Hyundai Motor pledges to invest $10.5 billion in US

U.S. President Joe Biden, right, shakes hands with Hyundai Motor Group Chairman Chung Euisun at the Grand Hyatt hotel Seoul, Sunday. Yonhap

Biden thanks Korean automaker for massive investment in EV plant, robotics

By Baek Byung-yeul

Hyundai Motor Group has decided to invest a total of $10.5 billion in the U.S., including the construction of an electric vehicle (EV) manufacturing plant and investing in future technologies such as robotics, urban air mobility (UAM), autonomous driving and artificial intelligence (AI), the head of Korea's largest automaker said Sunday.

"Yesterday, we announced an investment of $5.5 billion in the state of Georgia to establish our first dedicated electric vehicle and battery cell manufacturing plant. This will be our first such facility in the United States," Chung Euisun, chairman of Hyundai Motor Group, said in English during his meeting with U.S. President Joe Biden, who came to Seoul on an official visit.

"Today, I would also like to highlight an additional investment related to our future businesses. Hyundai Motor Group plans to invest an additional $5 billion through 2025, which will strengthen our collaboration with American enterprises in diverse technologies such as robotics, urban air mobility, autonomous driving and artificial intelligence," the chairman added.

Chung also mentioned that the total of over $10 billion investment "will enable us to grow into a company that offers better convenience and safety to our customers."

"In total, this makes the sum of our new U.S. investment to be over $10 billion. Through these investments, Hyundai Motor Group will provide our valued customers in America with innovative products and solutions and contribute to global carbon neutrality efforts," he added.

Chang Jae-hoon, CEO of Hyundai Motor, shakes hands with Brian Kemp, governor of Georgia, after signing an agreement to finalize a deal for Hyundai Motor Group to build an electric car manufacturing plant in Ellabell, Ga., Saturday (KST). Courtesy of Hyundai Motor Group

Hyundai Motor's CEO Chang Jae-hoon signed a contract with Georgia Governor Brian Kemp on Saturday (KST) to invest $5.5 billion to build the new factory dedicated to manufacture EVs and battery cells in Georgia.

Chung's remarks are in line with the Biden administration's plan to boost the eco-friendly industry. The new factory will break ground in early 2023 and is expected to begin commercial production in the first half of 2025 with an annual production capacity of 300,000. Also, the battery cell-manufacturing facility will be set up through a strategic partnership, with the details to be announced later, the group said.

In response, President Biden expressed his gratitude to Chung for the group's investment decision to lead the global auto industry as well as the future of the industry.

"It's great to be here to announce the more than $10 billion new investment in American manufacturing. This new commitment of $5 billion for advanced automotive technology, and $5.5 billion investments to open a new factory near Savannah, Georgia, it is going to create more than 8,000 new American jobs," the U.S. president said.

"Thanks to Hyundai, we are being part of this transformative automobile sector and accelerating us on a road where we're going to be handing to the United States of all electric future. That's what we're shooting for," he added.

Their meeting was originally scheduled for about 10 minutes, but it lasted 50 minutes as their talks and speeches to reporters continued. It is known that Chung explained to Biden the background of why the group decided to invest in EV and battery cell plants and what kinds of new businesses the group is pursuing in the U.S.

A Hyundai Motor Group spokesman said the group's investment decision in the U.S. will also greatly help the growth of a wide range of local Korean industries related to the group.

"So far, Hyundai Motor Group's overseas investment has boosted the group's brand value and increased demand there. As a result, domestic production and exports increased, leading to the revitalization of the domestic parts industry," the official said, adding that the investment announced Sunday will also have a positive effect not only on the U.S. but also on the Korean industry.

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