If IRA's Adverse Impact Increases
Robert Hood, vice president of government affairs at Hyundai Motor Co., said on Dec. 15 that the company may reconsider the economic feasibility of its electric vehicle (EV) plant in Georgia if the U.S. Inflation Reduction Act has an increasing adverse impact on it.
The plant in Georgia is scheduled to be put into operation in the first half of 2025 with an annual production capacity of 300,000 EVs. In addition, Hyundai Motor Group recently decided to build an EV battery plant in Georgia together with SK On. Hyundai’s investment in the two plants is at least US$5.5 billion.
“Georgia provides incentives for the investment, and yet we are supposed to pay penalties if we fail to reach the local employment and production levels specified in our contract with the state,” he said, adding, “What we are calling for is equal opportunities and Hyundai Motor Group does not want to leave the United States, where Hyundai Motor Company’s plant in Alabama and Kia’s plant in Georgia are already highly successful.”