A Hyundai shop sign is seen outside a car dealership in Bletchley, Milton Keynes, UK on May 31, 2020. REUTERS / Andrew Boyers / File Photo
South Korean Hyundai Motor Group announced on Thursday that it would invest $ 7.4 billion in the US through 2025 to manufacture electric vehicles, improve manufacturing facilities and continue investing in smart mobility solutions.
The announcement came before U.S. President Joe Biden meets with South Korean President Moon Jae-in in Washington next week to hold talks on North Korea, COVID-19 vaccines and other topics.
Biden has called for $ 174 billion in new spending to promote electric vehicles and charging.
The group’s Hyundai Motor Co (005380.KS) will begin producing electric vehicles at a US plant in 2022, while subsidiary Kia Corp (000270.KS) is also planning to build electric vehicles in the US. Hyundai has a factory in Alabama, while Kia produces cars in a Georgia plant.
“We are exploring options, including expanding our manufacturing facility, after taking a closer look at US market conditions and the US government’s new EV policy,” Hyundai said in a statement to Reuters.
The move comes as Hyundai’s largest electric battery supplier, SK Innovation (096770.KS), continues to build new US factories for Volkswagen (VOWG_p.DE) and Ford (FN) and plans to expand capacity in the US .
Hyundai Motor Group, South Korea’s second largest conglomerate, did not provide a breakdown of the investment, but said the spending will be mostly for Hyundai and Kia.
Hyundai said it will work with the U.S. government and business partners to install hydrogen refueling stations and offer its NEXO hydrogen SUVs.
Hyundai is also investing in robotics, urban air mobility and autonomous driving technology.
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