SEOUL (Reuters) – A new U.S. law excluding electric vehicles assembled outside North America from tax credits could persuade Hyundai Motor Co to bring forward the start-date for construction of an EV and battery plant in the United States to as early as this year, Yonhap news agency reported on Monday.
Hyundai Motor had said in May that it would break ground on its new facility in Georgia in early 2023 to achieve commercial production in the first half of 2025 with an annual capacity of 300,000 EV units.
But an unidentified auto industry source said Hyundai Motor was now considering starting construction later this year, in order to start commercial production in the second half of 2024, Yonhap reported.
Hyundai Motor was not immediately available for comment.
U.S. President Joe Biden on Tuesday signed into law a $430 billion bill, which ends tax credits for about 70% of the 72 electric vehicle models that were previously eligible.
As a result, EVs sold by Hyundai Motor, Kia Corp, Toyota and others are no longer eligible for the tax credits.
South Korean Foreign Minister Park Jin expressed concerns over the new U.S. legislation during a call with U.S. Secretary of State Antony Blinken last week, according to a foreign ministry official.
(Reporting by Heekyong Yang; Additional reporting by Soo-hyang Choi; Editing by Simon Cameron-Moore)
