Hyundai has commenced the production of electric SUVs at its $7.6 billion facility in Georgia. The manufacturing plant, which is located west of Savannah, saw its first electric vehicle for commercial sale being rolled off the assembly line less than two years after breaking ground. The grand opening celebration at the plant is anticipated to take place in the first quarter of 2025.
The Georgia plant, operated by Hyundai Motor Group Metaplant America, aims to employ a total of 8,500 workers in conjunction with battery partner LG Energy Solution. Once fully operational, the plant is projected to produce up to 300,000 electric vehicles annually, along with manufacturing the required batteries. The production areas for vehicles are already staffed with over 1,000 workers, with the battery facilities still under construction.
The first set of vehicles being manufactured at the Georgia site consists of the 2025 models of Hyundai’s Ioniq 5 electric SUVs. These American-made electric vehicles are scheduled to arrive at U.S. dealerships before the end of the current year. The Ioniq 5 proved to be the second-best-selling electric vehicle in the U.S. market, excluding those from Tesla, during the first half of 2024.
Hyundai’s decision to expedite the production of EVs in Georgia within two years of groundbreaking was largely influenced by federal electric vehicle incentives promoting domestic production. The Inflation Reduction Act of 2022 offers a tax credit of up to $7,500 for EV buyers, specifically for vehicles manufactured in North America with domestic batteries. Despite initial concerns from Hyundai executives regarding the legislation, the incentives accelerated the company’s timeline for opening the Georgia plant.
This initiative marks a significant development for Hyundai and the electric vehicle industry, demonstrating a strategic shift towards sustainable mobility and domestic manufacturing.