Hyundai Motor Group will receive 2.4 trillion won ($1.8 billion) in tax exemptions and incentives from the U.S. state of Georgia to build its first dedicated electric vehicle plant in the state. This is the largest incentive package ever offered by the state and includes a property and income tax exemption subsidy program, as well as other incentives for land, infrastructure, and equipment purchases.
Hyundai plans to build a 300,000-vehicle-per-year electric vehicle and battery plant in January 2023 in Bryan County, west of Savannah, on a site of about 3.5 million square meters, to start production in the first half of 2025.
Photo credit: Hyundai
Georgia Economic Development Commissioner Pat Wilson said in a statement, “These projects not only solidify our position as a pioneer in the electric vehicle transition but also ensure that thousands of people across the state will benefit from future job opportunities.”
According to state projections, the new Hyundai Georgia plant will have a payroll of 6.1 trillion won over 10 years. Auto parts manufacturers in the region are expected to create thousands of new jobs.
In exchange for supporting the agreement, Hyundai said it will provide Georgia with a benefit share of about 467 billion won starting in 2023 for an unspecified period and frequency. In addition, the agreement requires the company to return a portion of the subsidy if the company’s investment or employment levels fall below 80 percent of its commitment.