Hyundai has started producing electric SUVs at its manufacturing plant in Georgia, less than two years after breaking ground on the $7.6 billion facility. The factory held a celebration as its first EV for commercial sale rolled off the assembly line, marking the beginning of initial production of customer vehicles ahead of schedule. The plant is expected to employ 8,500 total workers and produce up to 300,000 EVs per year, as well as the batteries that power them. The vehicle production areas have been completed and are being staffed by over 1,000 workers, while the battery-making facilities are still under construction.
The first vehicles being produced at the Georgia site are 2025 models of Hyundai’s Ioniq 5 electric SUVs, which will be arriving at U.S. dealerships before the end of the year. During the first half of 2024, the Ioniq 5 was the second-best-selling electric vehicle in America not made by Tesla. Hyundai was motivated to start making EVs in Georgia within two years of groundbreaking due to federal electric vehicle incentives that reward domestic production. The Inflation Reduction Act, passed in 2022, includes a tax credit for EV buyers of up to $7,500, but only on cars made in North America with domestic batteries. This legislation led Hyundai to expedite its production in Georgia, despite initial complaints about the law being unfair.
Hyundai’s Georgia plant is the largest economic development project in the state’s history and received $2.1 billion in tax breaks and incentives from state and local governments. The grand opening celebration for the plant is expected to take place in the first quarter of 2025. The South Korean automaker partnered with LG Energy Solution for the production of electric vehicles at the Bryan County site, located about 50 miles west of Savannah. The Georgia plant will play a significant role in Hyundai’s goal to expand its presence in the EV market and meet growing demand for electric vehicles both in the U.S. and globally.
The decision to produce electric SUVs in Georgia reflects Hyundai’s commitment to sustainability and innovation in the automotive industry. The company recognizes the importance of transitioning towards electric vehicles to reduce carbon emissions and combat climate change. Hyundai President and Global Chief Operating Officer Jose Munoz has emphasized the significance of the Inflation Reduction Act in accelerating the company’s efforts to start manufacturing EVs in Georgia. The production of American-made EVs with domestic batteries enables Hyundai to take advantage of federal incentives and establish a strong presence in the growing market for electric vehicles.
Overall, Hyundai’s successful initiation of electric SUV production at its Georgia plant represents a significant milestone in the company’s global expansion strategy and commitment to sustainability. The completion of the first vehicles at the site marks a major achievement for Hyundai and its partnership with LG Energy Solution. By prioritizing domestic production of electric vehicles, Hyundai is poised to capitalize on federal incentives and position itself as a leading player in the rapidly evolving market for electric vehicles. The Georgia plant’s contributions to job creation, economic development, and environmental responsibility highlight Hyundai’s dedication to driving innovation and growth in the automotive industry.
