Hyundai Expanding Georgia Plant Hit by ICE Raid as Part of $55 Bn Global Investment Plan

Hyundai plans to locally produce 80% of the vehicles it sells in the U.S., the automaker announced Thursday. As part of a $55 billion global investment program it will spend $2.7 billion to expand the electrified vehicle plant near Savannah, Georgia hit by an ICE raid two weeks ago, boosting its production capacity to 500,000 vehicles annually. More from Headlight.News.

Hyundai Motor Co. CEO Jose Munoz announced a major global expansion program Thursday set to cost the South Korean automaker 77.3 trillion won, or $55 billion.  A key element of the “Vision and Product Roadmap,” Munoz told investors, will be a major expansion of Hyundai’s U.S. manufacturing network.

Over the next five years, the world’s third-largest automaker plans to increase U.S. production capacity to the point it will be able to supply 80% of the vehicles sold in the U.S. from plants like the one it opened near Savannah, Georgia late last year.

That factory, which experienced a raid by ICE two weeks ago, will benefit from a $2.7 billion investment set to boost its capacity to 500,000 a year.

More EVs and hybrids

The Savannah plant is set to become the primary U.S. source for the electrified vehicles sold in the market, and will add a number of new models over the next five year. All told, it is expected to produce a mix of 10 electrified models when the expansion program is completed.

Worldwide, Hyundai plans to boost sales of electrified models to 3.3 million annually. That will include a “comprehensive” line-up of all-electric models for the company’s three brands – Hyundai, Kia and Genesis – as well as “18+ hybrids.” Hyundai will expand not only its current line-up of conventional and plug-in hybrids but, added Munoz, will also introduce extended-range electric vehicles, starting in 2027.

EREVs are similar to PHEVs but use their internal combustion engines solely to generate electric current that keep their batteries charged. The combination will yield a range of about 600 miles, Munoz indicated.

ICE raid sets back operations

Earlier this month, federal immigration agents raided the battery plant being erected by Hyundai and partner LG Energy Solution to provide a local source for the batteries being used at the Savannah plant. About 400 undocumented workers were taken into custody, including roughly 300 South Korean citizens. They were returned to Korea on a charter flight this week.

Sources told Headlight.News that the Korean companies have been talking to U.S. officials to try to resolve visa issues that might see some of the Korean workers return to Georgia. Some, a company representative said on background, have skills not available in the U.S., though the long-term plan is to train America workers, of which about 100 were set to b brought in later this month.

For now, however, Munoz said the raid and arrests have pushed back work at the battery plant by at least two to three months.

“We hope the U.S. and Korea can work on mutually beneficial solutions for short-term business travel, especially for a specialized technical expertise,” Munoz said from New York City as part of the U.S.-Korea investors presentation.

More Hyundai News

• Hyundai Names Munoz its First Non-Korean CEO
• Hyundai Begins Production at New Georgia EV Plant
• ICE Raid at Hyundai Plant Kicks Off Diplomatic Crisis

Setting new targets

If the five-year roadmap meets its goals, Hyundai plans to enter the next decade with annual global sales of 5.55 million vehicles. Electrified models are expected to account for 60% of those, or around 3.3 million vehicles.

Much of that depends on the U.S. market, but Hyundai will be investing a total of $55 million worldwide and the company noted it will be developing a variety of products for other regional markets. That includes locally targeted EVs, such as the Ioniq 3 for Europe and Elexio sedan for China, India will get its own “locally designed EV,” as well.

Hyundai, meanwhile, will enter new market segments under the 5-year plan, including midsize pickups and light commercial vehicles.

Counting on new partnerships

To enter those two new segments Hyundai is planning to expand its strategic alliance with General Motors. It will lead to the launch of five co-developed vehicles “as early as 2028,” including electric commercial vans for North America, along with compact SUVS and compact and midsize SUVs for Central and South America. Hyundai said it expects combined annual sales of 800,000 vehicles once production gets fully underway.

The Korean manufacturer has set up several other partnerships, including one with Amazon providing it another retail marketing outlet. A separate alliance with Waymo is currently testing the potential for using Hyundai’s Ioniq 5 EV in the Google spin-off’s robotaxi fleet.

The new roadmap also calls for significant expansion of Hyundai’s U.S. robotics operations.

The latest plan offers more details on the $26 billion Hyundai previously said it will invest in the U.S. market this decade. That includes setting up a new steel mill in Louisiana.