South Korea’s Hyundai Motor Group said on Thursday it planned to invest $7.4 billion in the United States by 2025 to produce electric vehicles, upgrade production facilities and further its investment 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 in talks that are expected cover North Korea, COVID-19 vaccines and other topics.
Biden has called for $174 billion in new spending to boost electric vehicles and charging.
The group’s Hyundai Motor Co will begin electric vehicle production at a U.S. facility in 2022, while affiliate Kia Corp also plans to build electric vehicles in the United States. Hyundai has a factory in Alabama, while Kia produces cars at a plant in Georgia.
“We are reviewing options including expanding on our production facility after we’ve taken a closer look at U.S. market conditions and U.S. government’s new EV policy,” Hyundai said in a statement to Reuters.
The move comes as Hyundai’s major electric battery supplier, SK Innovation, proceeds with construction of new U.S. factories for Volkswagen and Ford and plans to expand capacity in the United States.
Hyundai Motor Group, South Korea’s No. 2 conglomerate, did not provide the investment breakdown but said the spending would be primarily 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, the company said.
Reporting by Hyunjoo Jin in Berkeley, California, Ankit Ajmera in Bengaluru and Heekyong Yang in Seoul; Editing by Nick Macfie and Steve Orlofsky; Reuters