Hyundai Motor Co announced on Tuesday that it has formalized a $5 billion electric vehicle (EV) battery joint venture in the United States, fueling its electric ambitions in the country. The South Korean company will build a new battery manufacturing plant in Georgia with partner SK Innovation Co Ltd.’s battery unit SK On.
While Hyundai Motor and SK On have previously reached a tentative agreement, the official announcement of the $5 billion joint venture is a strong boost to the company’s seriousness in tapping the growing US EV market. The move is especially important as the U.S. previously announced Joe Biden’s administration’s Inflation Reduction Act (IRA), which imposes requirements on electric vehicle battery components and critical minerals so that car buyers can get up to $7,500 on a new car tax credit EV.
Also read: The US tax credit for EVs is fully explained.
Currently, neither Hyundai or Kia EVs qualify for the tax credit, which has also led to political friction in the past, with South Korea’s national security adviser raising the issue with his U.S. counterpart last year. Interestingly, the official announcement about the Hyundai joint venture was made during South Korean President Yoon Hee-yeol’s visit to Washington, the first visit by a South Korean leader to the country in 12 years. He was accompanied by senior officials from some of South Korea’s largest companies, including Chung Eui-sun, executive chairman of Hyundai Motor Group.
(Input from Reuters)
First published date: April 25, 2023 at 13:16 PM CST