The Georgia government announced Friday that Korean automaker Hyundai will pour $5.5 billion into the state for a new electric vehicle factory, marking the largest economic development project in Georgia history.
According to a press release from the office of Gov. Brian Kemp (R-GA), Hyundai and its affiliates are poised to create roughly 8,100 jobs in Georgia’s coastal region. The governor was joined by various Hyundai executives, including Hyundai CEO Jay Chang, for a ceremony on Friday afternoon.
“We are proud to welcome Hyundai Motor Group to Georgia as we forge an innovative future together,” Kemp said. “My commitment to hardworking Georgians to make our state the best place to live, work, and raise our families remains steadfast, and with this announcement, which is now the largest economic development project in our state’s history, we will continue working to make Georgia the premier destination for quality companies who are creating the jobs of today, tomorrow, and beyond.”
“We decided to build our first dedicated EV plant in the U.S. because America embraces change and drives innovation,” Chang added. “This new EV plant is the future of our business, and it will help us meet the growing demands of our U.S. customers who want leading edge design, safe, zero-emissions vehicles now and in the future.”
Hyundai will begin construction in 2023, and the facility will be able to produce 300,000 units per year by 2025.
The American regulatory environment is presently favorable to electric vehicle investments largely due to the Biden administration’s policy priorities. Earlier this month, the White House unveiled a $3.1 billion plan to expedite electric vehicle production — which will “help reduce emissions and create opportunities across the country,” according to White House National Climate Advisor Gina McCarthy.
The investment also occurs as the automotive industry experiences constraints from a worldwide computer chip shortage. Many Asian economies introduced harsh lockdown measures at the onset of COVID-19, thereby creating bottlenecks in the global semiconductor supply chain. Some automotive companies have been forced to limit or pause production due to the phenomenon — worsening inflationary pressures as vehicle prices surge at their highest rate in decades.
In response, companies are racing to erect new semiconductor processing facilities, even as local officials encourage production in their states. Beyond Hyundai’s investment in Georgia, Samsung is building a $17 billion semiconductor factory in Taylor, Texas — marking the largest foreign direct investment in the state’s history.
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” Gov. Greg Abbott (R-TX) said last November. “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry.”
Meanwhile, Gov. Ron DeSantis (R-FL) announced in January that he would invest the state’s funds to increase microchip and semiconductor manufacturing so that the Chinese Communist Party cannot “hold our supply chain hostage.”
“We have to start standing up as Floridians and Americans,” DeSantis said at a press conference. “We cannot be captive. Key sectors of our economy should not be captive to some of these foreign nations, particularly outfits like the Communist Party of China.”