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Tesla Rival Makes Big Investment That May Attract Attention

Hyundai announces plans to build an electric vehicle plant in Georgia, one of several EV-related companies planting seeds in the Peach State.
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In 1909, the White Star Automobile Company of Atlanta assembled the first car in the state of Georgia.

White Star went bankrupt two years later, but Georgia's future with the automobile industry is burning bright.

'Every Step of the Supply Chain'

Georgia's department of economic development said on its website that the state is working to develop the electric vehicle manufacturing sector "at every step of the supply chain, from material processing to battery manufacturing to automotive assembly to battery recycling."

The Peach State reached an agreement with Rivian  (RIVN) - Get Rivian Automotive Inc. Report that will give the electric vehicle maker $1.5 billion in subsidies for its planned factory.

The $5 billion facility, which Rivian announced in December, is projected to create 7,500 jobs with an average wage of $56,000 at Stanton Springs, half an hour east of Atlanta.

Then there's SK Battery America, which said earlier this year that it will increase its hiring at its Commerce, Georgia plant by 15% due to a surge in electric vehicle orders.

SK, which has supply contracts with Ford  (F) - Get Ford Motor Company Report and Volkswagen  (VWAGY) - Get Volkswagen AG ADR Report for its Georgia-made batteries, will hire 3,000 workers in Georgia by the end of 2023, up from its original estimate of 2,600.

And now Hyundai Motor Group has agreed with the Peach State to build its first dedicated full electric vehicle and battery manufacturing facilities in the U.S.

'It's Official!'

"It's official!" Hyundai announced on Twitter. "Our first dedicated EV and battery manufacturing facility in the U.S. will be in Georgia!"

The announcement confirms new stories from earlier this month.

The new facility will break ground in early 2023 and is expected to begin commercial production in the first half of 2025 with an annual capacity of 300,000 units.

Hyundai said the $5.54 billion dollar investment is expected to create about 8,100 jobs, and pull in another billion dollars’ worth of investment from suppliers. 

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The facility will be located on a dedicated 2,923-acre site in Bryan County Georgia.

The battery manufacturing facility will be established through a strategic partnership, which the details will be disclosed at a later stage.

Hyundai said it is stepping up its its electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030.

To realize this goal, Hyundai said plans to establish a global EV production network that will ensure a stable supply of EVs around the globe.

Hyundai said last week that it plans to invest a total of $16.54 billion through 2030 for the expansion of its EV business in South Korea.

Shanghai Shutdowns

The company said it aims to become one of the top three EV providers in the U.S. by 2026.

Hyundai is the parent company of Kia, which opened its first car manufacturing plant in Georgia in 2009. The plant employs about 3,000 people who produce about 340,000 cars each year.

The U.S. auto locations come at a time when Tesla  (TSLA) - Get Tesla Inc. Report has been contending with Covid-19-related shutdowns in Shanghai. 

The city imposed strict controls in March on the movement of people and goods to curb the spread of the virus during a recent outbreak.

Tesla plans to restore production at its Shanghai plant to the level at which it had operated before the city's lockdown by Tuesday, May 24, a day later than its most recent recovery plan, Reuters reported, citing an internal memo.

The company has been contending with such problems as insufficient workers, shipping obstacles and restricted supplies of parts, including wire harnesses.

CEO Elon Musk in April opened Tesla's new factory in Austin, Texas, marking the company's second U.S. plant.