According to the Yonhap news agency, Hyundai Motor Co may start building an EV and battery plant in the US as early as this year due to a new U.S. law that bars electric vehicles assembled outside of North America from tax credits.
In May, Hyundai Motor announced that construction would begin on its new facility in Georgia in early 2023, with commercial production initiating in the first half of 2025 and a capacity of 300,000 EVs per year.
To start commercial production in the second half of 2024, however, an unnamed auto industry source claimed that Hyundai Motor was now considering starting construction later this year.
Hyundai Motor declined to comment right away.
A $430 billion bill that US President Joe Biden signed into law on Tuesday eliminates tax credits for about 70% of the 72 electric vehicle models that were previously eligible.
Therefore, the tax credits are no longer available for EVs sold by Hyundai Motor, Kia Corp, Toyota, and other manufacturers.
During a conversation with American Secretary of State Antony Blinken last week, South Korean Foreign Minister Park Jin voiced concerns about the new U.S. legislation, according to a representative of the foreign ministry.
