Hyundai Motor to Invest $300 Million in Alabama EV Plant

Hyundai Motor will invest $300 million (roughly Rs. 2283 crore) in its US Alabama plant to produce Santa Fe hybrid and Genesis Electrified GV70 models.

This is the first time to produce eco-friendly vehicles such as electric vehicles (EVs) and hybrid cars in the US. Hyundai Motor Group currently produces only internal combustion engine vehicles at its Alabama and Georgia plants.

On April 13, Jose Munoz, president of Hyundai Motor North America, officially announced the plan to produce EVs at the Alabama plant at the New York Auto Show.

President Munoz said, "Hyundai plans to produce Santa Fe Hybrid from October and Genesis GV70 from December."

Hyundai Motor will invest $300 million to build EV production facilities and create 200 new jobs.

Ernie Kim, president of Hyundai Motor Manufacturing Alabama, said, "Hyundai Motor has taken the first step toward producing EVs in the US. We are excited to showcase our team members in producing EVs here at the Alabama plant."

It is analysed that Hyundai Motor's investment is based on the Joe Biden administration's 'Buy American' policy. The Biden administration announced in March that the US will increase the percentage of the use of American parts and components from the current 55 percent to 75 percent by 2029.