Summary
- Hyundai’s electric vehicle manufacturing plant in Georgia has started initial production
- U.S. consumers and Hyundai Motor Group will be eligible for tax benefits for vehicles assembled in Ellabell by 2024
- Construction of the Hyundai Metaplant in Bryan County has progressed rapidly since January 2023
- The site has seen at least 13 traumatic injuries in the first six months of 2024
- Hyundai affiliates have promised to invest $5.545 billion and hire at least 8,500 workers by 2031 at the site
Article
The Hyundai Motor Group’s electronic vehicle manufacturing plant in Savannah has begun initial production, putting the company on track to have American-assembled EVs available for sale by the end of the year. This milestone will make both Hyundai Motor Group and U.S. consumers eligible for tax benefits under the Biden administration’s Inflation Reduction Act for vehicles made in Ellabell in 2024. Construction on the plant began in January 2023 and has progressed rapidly, with the site encompassing several Hyundai affiliate factories covering 3,000 acres of land south of I-16.
In order to qualify for the tax benefits in 2024, vehicles must have undergone final assembly in North America, with at least 60% of the battery assembled in the region. The construction of the Hyundai Motor Group Metaplant America (HMGMA) and other affiliate factories has come at a cost, with at least 12 traumatic workplace safety incidents investigated by OSHA. The site, home to seven Hyundai affiliates and numerous subcontractors, has seen at least 13 traumatic injuries in the first six months of 2024, raising concerns about worker safety.
As part of a deal that includes $2.1 billion in state tax deferments and subsidized construction costs, Hyundai affiliates have committed to investing $5.545 billion and hiring 8,500 workers by 2031 at an average salary of $58,105 annually. The companies must retain these jobs until 2048. The first locally assembled car, Hyundai’s IONIQ 5, was celebrated at the site in an event for workers, signaling progress towards the production of electric vehicles. However, the exact number of cars to be built by the end of 2024 and the status of the LG battery plant on-site remain unclear.
Despite the achievements, challenges lie ahead for the manufacturing facility, which is expected to produce 300,000 EVs annually. The approval of water permits necessary for manufacturing has not yet been secured, and concerns have been raised about the plant’s water use estimates. Additionally, Georgia’s tight labor market may result in unfilled Hyundai jobs next year, posing a risk to the plant’s operations. The local community has expressed skepticism about the plant’s water usage and the potential impact on public resources, adding to the uncertainty surrounding the facility’s future.
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