Hyundai Motor Group, the South Korean multinational conglomerate which owns Hyundai Motor Co (OTC: HYMTF) and its sister concern Kia Motors, said on Thursday it will invest $7.4 billion by 2025 to make electric vehicles, upgrade production facilities, and further fund smart mobility solutions in the United States.
The Hyundai U.S. subsidiary will begin electric vehicle production in 2022 at its Alabama manufacturing facility.
Hyundai currently sells the battery-powered Kona and Ioniq in the U.S. and is planning to launch Ioniq 5, a new electric vehicle later this year.
The development comes amid President Joe Biden prioritizing a $174 billion electric vehicle push to ensure faster adoption of green energy along with a pledge to replace the federal government’s 650,000 vehicle motor pool with EVs.
Besides Tesla Inc (NASDAQ: TSLA), the early EV disruptor, scores of legacy automakers including General Motors Co (NYSE: GM), Ford Motor Co (NYSE: F) have now started investing billions of dollars to cater to the demand for EVs.
Chinese electric vehicle companies such as Nio Inc (NYSE: NIO), Li Auto (NASDAQ: LI), Xpeng Inc (NYSE: XPEV) are also eyeing the international markets.
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