According to foreign media reports, due to the rising cost of building factories caused by inflation and other factors, Hyundai Motor Group is building a dedicated electric vehicle factory in Savannah, Georgia, USA and a joint venture battery with LG New Energy. Investment in factories will also increase, reaching $7.59 billion.
According to foreign media reports, Georgia has announced that Hyundai Motor Group and LG New Energy will increase investment. Reaching 7.59 billion U.S. dollars, it means that the investment in building the plant has increased by more than 2 billion U.S. dollars compared with the 5.54 billion U.S. dollars announced by Hyundai Motor Group in May last year.
Foreign media also disclosed in the report that due to the impact of inflation, the construction cost of Hyundai Motor Group and LG New Energy’s Georgia plant has increased by more than 30% compared with the original plan, which is also the main reason for their increased investment.
After the increase in investment, Hyundai Motor Group will still be the main investor. Foreign media reported that Hyundai Motor Group initially planned to invest US$3 billion in electric vehicle dedicated factories and US$2 billion in joint venture battery factories. Investment in joint venture battery factories is expected to exceed $4.3 billion.
According to the plan, Hyundai Motor Group’s dedicated electric vehicle factory in Georgia will be put into operation in the second half of next year, producing Hyundai, Kia and Genesis models, with a planned annual production capacity of 300,000 vehicles.
