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Hyundai is considering starting construction later this year in order to begin commercial production in the second half of 2024.
A new US law excluding electric vehicles assembled outside North America from tax credits could persuade South Korea’s Hyundai Motor Co to bring forward the start-date for construction of an EV and battery plant in the United States to as early as this year, Yonhap news agency reported on Monday.
Hyundai Motor announced in May that it would break ground on its new Georgia facility in early 2023, with commercial production beginning in the first half of 2025 and a capacity of 300,000 units per year. However, Yonhap reported that the company is now considering starting construction later this year in order to begin commercial production in the second half of 2024, citing an unidentified auto industry source. Hyundai Motor did not immediately respond to requests for comment. On August 16, US President Joe Biden signed into law a $430 billion bill that eliminates tax credits for roughly 70% of the 72 EV models that were previously eligible.
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As a result, electric vehicles sold by Hyundai Motor, Kia Corp, Toyota, and others are no longer eligible for tax breaks. According to a foreign ministry official, South Korean Foreign Minister Park Jin expressed concerns about the new US legislation during a call with US Secretary of State Antony Blinken last week.
Industry Minister Lee Chang-yang told a parliamentary session that South Korea will consider filing a complaint with the World Trade Organization over the United States Inflation Reduction Act, citing concerns that the law may violate WTO rules and a bilateral free trade agreement between South Korea and the United States. According to Lee, the country’s Trade Minister Ahn Duk-geun plans to discuss the issue with US officials next week during his visit to Washington.
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