And it’s official. On October 25, Hyundai will open its massive $5.5 billion electric car factory in Bryan County, Georgia. After months of lobbying US officials over changes to tax credits for electric vehicles in the recently passed climate law, a South Korean auto group is officially breaking ground on an electric vehicle factory.

In accordance with report from Atlanta Journal-ConstitutionHyundai will meet with state and local leaders to break ground on the 3,000-acre project, the most significant economic development project in Georgia history.

Originally Hyundai announced plans for the $5.5 billion facility, the first dedicated electric vehicle plant, in May. The automaker has entered into an agreement with the state of Georgia with plans to begin construction in early 2023.

However, since the Inflation Reduction Act was passed in August, Hyundai and South Korean officials have publicly expressed their concerns about the disproportionate impact it could have on automakers.

Before the adoption of the Hyundai model bill (incl Hyundai IONIQ 5 and Kia EV6) qualified, but with strict new requirements for the source and assembly of batteries, this will no longer be the case.

The climate bill was passed to renew US manufacturing capacity, support the transition to electric vehicles in the United States and stimulate the economy (companies have invested nearly 85 billion dollars in electric vehicles and battery technologies from 2021).

South Korean news agency reported last month to meet the criteria, Hyundai is considering accelerating the timeline and could begin construction by the end of 2022.

It looks like the reports are accurate, as Hyundai has announced plans to begin construction later this month to secure the EV tax credit. When can we expect the automaker’s electric models to qualify?

Hyundai IONIQ 5 Source: Hyundai

Will Hyundai EV models qualify for the tax credit?

Georgia Senator Reverend Warnock introduced the bill earlier this month, giving automakers like Hyundai a grace period to build electric vehicles in the United States.

The Affordable Electric Vehicles for America Act, as it’s called, would delay specific requirements from becoming law until 2025. Although he has little chance of being accepted, it makes sense.

Hyundai has already agreed to invest heavily in electric vehicle production in the US, which is expected to create around 8,100 jobs. In addition, parts supplier Hyundai Group (Hyundai, Kia, Genesis) said it will invest $1.3 billion in a plant for electric vehicle components. expand his North American footprint continues.

Why not include them in a tax credit to give them time and accelerate the adoption of electric vehicles in the United States?

Earlier this month reports from South Korea suggested that President Biden had “expressed a willingness” to continue discussions with leaders about whether foreign automakers could receive a US tax credit.

Hyundai has currently looking for delaying the phase-in period of the recently passed US climate bill so that its EV models can qualify for the tax credit until the plant is up and running, the AJC reports.

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