Hyundai Motor Company (KRX: 005380) announced Thursday its plans to invest US$7.4 billion in the United States by 2025. The investment is earmarked to chiefly push the electric vehicle agenda of Hyundai and its affiliate carmaker Kia Corporation (KRX: 000270).
This announcement came before the scheduled state visit of South Korean President Moon Jae-in in Washington next week. US President Joe Biden has previously called for a US$174 billion investment into the electric vehicle industry and offered manufacturing rebates to have EVs built in America.
In a statement, the South Korean carmaker said that it is reviewing options after taking a “closer look at U.S. market conditions and U.S. government’s new EV policy.”
Currently, Hyundai manufactures its vehicles in the US at a plant in Montgomery, Alabama while Kia produces cars at a facility in West Point, Georgia.
“One key element of Kia’s transformation is transitioning from internal combustion engine to electrification,” Sean Yoon, CEO of Kia North America, said in the statement.
Part of the investment is also intended to drum up more innovation around areas such as flying cars, autonomous driving, and robotics. Hyundai and ride-hailing platform Uber unveiled a prototype of a four-seat, electric flying taxi in January 2020.
The breakdown of the investment is yet to be released but Hyundai intends to start producing its electric vehicles from its Alabama-based facility next year.
Hyundai Motor Company last traded at ₩229,000 ($245.80) and Kia Corporation last traded at ₩82,600 ($88.60) on the Korea Exchange.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.