Hyundai's New Electric Vehicle Plant Opens, Securing Tax Incentives

Feb 12, 2024 04:36 AM EST

CAR FOUR-WHEELER VEHICLE HYUNDAI — (Photo : PIXABAY/tortugamediaservices)

Hyundai's new electric vehicle and battery manufacturing facility in the United States is scheduled to commence operations by October. Hyundai Motor America CEO Jose Munoz emphasizes the brand's proactive efforts to qualify for the $7,500 EV tax credit by accelerating the plant's opening.

Hyundai's New Electric Vehicle Plant Opens

Commencing construction in October 2022, Hyundai initiated the development of its substantial $7.6 billion electric vehicle megaplant in Georgia. One year later, the company revealed that 99.9% of the foundation work had been finalized, highlighting the accelerated pace of construction.

According to Oscar Kwon, the CEO of Hyundai Motor Group Metaplant America (HMGMA), the site "advances every day," showcasing the ongoing progress of the project.

Electrek reported, despite Hyundai's initial plan to commence construction in early 2023, the company accelerated the process following the passage of the Inflation Reduction Act. With a $7,500 tax credit at stake, Hyundai expedited the timeline as much as possible.

According to Munoz's statement to Automotive News, Hyundai is "pulling ahead because everybody knows how important it is" to qualify for the tax credit. Nevertheless, Hyundai Motor, which includes Kia and Genesis, surpassed Ford and GM, securing the position of the second-largest EV seller in the US, trailing only behind Tesla.

The brand's success is largely due to a loophole that allow its electric vehicles to be eligible for the $7,500 tax credit through leasing. In expressing confidence about meeting the necessary criteria shortly after the commencement, Munoz highlighted that there are various dynamic factors involved in the process.

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The facility will assemble six electric models spanning the Hyundai, Kia, and Genesis brands, featuring Hyundai's inaugural three-row electric SUV, the IONIQ 7. Anticipated to make its debut this year, the production of Hyundai's IONIQ 7 is slated to commence in 2025.

All Set for Operation

Hyundai's new electric vehicle plant, anticipated to open by October 2024, is set to launch three months earlier than originally planned. Simultaneously, collaboration with LG Energy for battery production is scheduled to commence in January. Hyundai has announced its intention to temporarily source batteries from other US plants to manage the interim period.

Upon full operation, Hyundai's Metaplant has the capacity to manufacture 300,000 electric vehicles annually, with the flexibility to expand to 500,000 if required.

Meanwhile, AJC Politics reported The Hyundai Metaplant, currently being built near Savannah, has successfully trained its inaugural group of 500 production workers in preparation for the forthcoming opening of the electric vehicle manufacturing facility in early 2025, possibly earlier.

These initial employees, referred to as "metapros," are acquiring skills through training provided at four centers in the Savannah area, managed by QuickStart, a division of the Technical College System of Georgia. Hyundai Metaplant CEO Oscar Kwon has revealed that these metapros will initiate the construction of test cars in the coming months before the commencement of full-scale production.

Kwon's update came during a Thursday morning groundbreaking ceremony for an onsite training facility. The QuickStart Hyundai Mobility Training Center of Georgia is adjacent to the Metaplant's headquarters building on the 2,906-acre site along Interstate 16, about 20 miles west of downtown Savannah.