Hyundai plans to invest $7.4 billion in the United States
Hyundai Motor Group of South Korea announced on Thursday that by 2025, it plans to invest $7.4 billion in the United States to produce electric vehicles, upgrade manufacturing facilities, and expand its investment in smart mobility solutions.
Hyundai’s announcement comes as US President Joe Biden’s administration prioritises an electric vehicle push, with the goal of replacing 650,000 federal fleet vehicles with American-made electric vehicles.
Biden also signed an executive order in January aimed at enforcing stricter rules on government procurement practises in order to boost purchases of American-made goods, strengthen domestic manufacturing, and open up new markets for new technologies.
Hyundai’s investment in the United States, according to analysts, was necessary to take advantage of the Biden administration’s EV policies, including subsidies and tax incentives.
“If Hyundai wants to take full advantage of US EV policies, it needs to pursue not only EV production but also major auto parts sourcing in the US,” said Kevin Yoo, an analyst at eBEST Investment & Securities.
Lee went on to say that how the South Korean automaker sources U.S.-made batteries for its EV production in the United States is up to them, implying that top battery makers may invest more in the country.
Hyundai’s announcement comes ahead of a meeting between US President Joe Biden and South Korean President Moon Jae-in in Washington next week, where they are expected to discuss North Korea, COVID-19 vaccines, and other issues.
Biden has proposed a $174 billion investment in electric vehicles and charging infrastructure.
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Hyundai plans to invest $7.4 billion in the United States Hyundai plans to invest $7.4 billion in the United States Hyundai plans to invest $7.4 billion in the United States