Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Hyundai to invest $7.4 billion in U.S. by 2025, with electric cars in focus

Stock MarketsMay 14, 2021 05:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A shop sign of Hyundai is seen outside a car showroom in Bletchley, Milton Keynes, Britain, May 31, 2020. REUTERS/Andrew Boyers/File Photo 2/2

(Reuters) -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.

Hyundai's announcement comes as U.S. President Joe Biden's administration prioritized a push toward electric cars, aiming to replace the 650,000 vehicles in federal fleets with U.S.-made electric vehicles.

In January, Biden also signed an executive order aimed at imposing tougher rules on government procurement practices to increase purchases of American-made products, strengthening domestic manufacturing and create markets for new technologies.

Analysts said Hyundai's U.S. investment was essential to take advantage of the Biden administration's EV policies and to receive subsidies and tax incentives.

"If Hyundai seeks to fully leverage U.S. EV policies, they need to pursue not only EV production but also sourcing major auto parts in the United States," said Kevin Yoo, an analyst at eBEST Investment & Securities.

Lee added that it is up to how the South Korean carmaker sources U.S.-made batteries for its U.S. EV production, raising potential further investment in the United States by top battery makers.

Hyundai's 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 (DE:VOWG_p) and Ford and plans to expand capacity in the United States.

SK Group chairman Chey Tae-won has said SK could invest up to $5 billion for battery business in the United States, meaning it appears there is room for SK to invest further in the U.S., a person familiar with the matter told Reuters on Friday.

Since 2018, SK Innovation has so far invested about 3 trillion won ($2.6 billion) to build two EV battery factories in Georgia.

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. Analysts said that Hyundai is likely to allocate the biggest amount to its EV capex, and that spending for cooperation with other U.S. companies could be more flexible depending on how the U.S. EV market changes.

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.

Hyundai to invest $7.4 billion in U.S. by 2025, with electric cars in focus
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Randy Randy
randy00 May 13, 2021 2:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I have a 2010 Kia - best car I ever owned, zero problems.
David Sather
David Sather May 13, 2021 2:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Promises . Checks in the mail
Tre Hsi
Tre Hsi May 13, 2021 2:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
well, let's hope this one works out better than the Foxconn deal President Orange touted in Wisconsin.....
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email