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On Tuesday, Hyundai Motor Co (005380.KS), the largest automaker in South Korea, will break ground on a $5.54 billion electric vehicle (EV) and battery facility in the United States as it struggles with the unclear future of its EV sales in its largest market.
The enormous plant in Bryan County, west of Savannah, where Hyundai hopes to start commercial production in the first half of 2025, will have a 300,000 unit annual capacity.
The ceremony will be attended by Georgia’s two senators, Democrats Jon Ossoff and Raphael Warnock, as well as Republican Governor Brian Kemp of Georgia. The coming month will see elections for Kemp and Warnock.
The groundbreaking occurs in the midst of resentment from Korea and the European Union about American tax policy on electric vehicles.
According to the President Joe Biden-signed Inflation Reduction Act, electric vehicles (EVs) must be built in North America in order to be eligible for American tax incentives. Major European automakers, including Hyundai and its affiliate Kia Corp (000270.KS), as well as those that do not yet produce EVs there, were also not eligible for the incentives.
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