Doha, Qatar: Hyundai Motor Group has once again moved up the launch of its new US plant solely dedicated to producing electric vehicles to October this year, three months ahead of its current schedule, to enhance its readiness to toughened subsidy rules.
“We’re pulling ahead because everybody knows how important it is because so far we don’t qualify for federal tax credits,” Hyundai Motor America CEO Jose Munoz said during an interview with Automotive News, an American automotive industry media outlet, last Friday.
Munoz explained that initiating production sooner will enable Hyundai to capitalize on the $7,500 federal tax credit for EVs manufactured in North America with specific battery components and minerals.
Construction of the $7.6bn EV and battery complex, called Hyundai Motor Group Metaplant America began in October 2022 in Bryan County, Georgia, with the initial completion date moved from the second half of 2025 to January 2025, and now to October 2024, marking the second advancement of the timeline. Hyundai officials reported last year that over 2,000 workers are engaged in the construction every week.
The urgency to begin production stems primarily from the Inflation Reduction Act, which incentivizes the production of EVs in North America. Hyundai has so far adapted to these stipulations by increasing the lease proportion of its vehicles in the US, navigating around the requirement for North American assembly to qualify for subsidies.
The recent tightening of EV subsidy qualifications in January has led to even stricter restrictions on battery component sourcing, disqualifying suppliers associated with certain foreign nations, most notably China.
The metaplant is slated to produce six models across Hyundai’s three brands: Hyundai, Genesis, and Kia. Although the first model to be manufactured remains unspecified, Munoz confirmed the lineup would include the much-anticipated three-row Ioniq 7, aiming for a 2025 launch.
Adjacent to the vehicle assembly plant, a $4.3bn joint venture with Korean battery maker LG Energy Solution will focus on battery production with an annual production capacity of 30 gigawatt-hours. Operations are expected to commence in late 2025.
