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Question now is which EV model? |
Hyundai Motor Group (HMG) said it would spend $7.4bn in the US by 2025 to produce future EVs, enhance production facilities and further its investments in “smart mobility solutions”.
HMG’s investment will enhance overall product competitiveness by prioritizing future mobility technologies, including electrification and hydrogen energy.
Jose Muñoz, HMG global COO and president and CEO of Hyundai Motor North America said: “This investment demonstrates our deep commitment to the U.S. market, our dealers and customers.”
Sean Yoon, president and CEO of Kia North America added: “One key element of Kia’s transformation is transitioning from internal combustion engine to electrification. With our strategic investment in the US to produce EV models, we are making huge strides to lead the EV market but also increase our contribution to the economies where we do business.”
Hyundai and Kia will invest in growing its EV manufacturing footprint to scale production and satisfy US market demands. Hyundai Motor will offer American-made EVs to US buyers starting next year.
Hyundai and Kia will monitor the market conditions and US government EV policy to finalise its plan to enhance its US production facilities and gradually expand its local EV production.
HMG will expand the US hydrogen ecosystem in collaboration with local private and public partners
HMG signed an MOU with the US Department of Energy in February 2020 to cooperate in hydrogen fuel cell technology innovation and global expansion. This included the installation of a hydrogen refueling station and providing NEXO SUVs.
Later this year, Hyundai will proceed on demonstration project in preparation for commercialisation of fuel cell electric trucks. Hyundai Motor will also work with local partners to conduct a hydrogen refueling demonstration project for fuel cell electric trucks and provide logistics between port and inland warehouses by using fuel cell electric trucks.
Hyundai have previously made an agreement with Cummins to accelerate deployment of fuel cell electric systems in the US market.
Hyundai Motor confirmed to Bloomberg the EVs would be made at its assembly plant in Montgomery, Alabama. Kia has a factory in West Point, Georgia.
“We’re going to review options, including the expansion of our production facility, after we’ve taken a closer look at market conditions and the US government’s new EV policy,” Michele Tinson, a US-based spokeswoman for Hyundai said. The primary focus for both brands is “ensuring a stable EV supply chain to meet US demand”.
President Joe Biden’s proposed infrastructure bill allocates $174bn for charging stations, planned consumer rebates for American-made EVs and a pledge to electrify the government’s fleet. Automakers are betting it could help accelerate a consumer shift to plug-in cars, which made up just 1.8% of new car sales in the US last year, Bloomberg noted.