Hyundai to invest US$7.4 billion in US by 2025, with electric cars in focus Toggle share menu
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Hyundai to invest US$7.4 billion in US by 2025, with electric cars in focus :South Korea s Hyundai Motor Group said on Thursday it planned to invest US$7.4 billion in the United States by 2025 to produce electric vehicles, upgrade production facilities and further its investment in smart mobility solutions.
FILE PHOTO: The 2019 Hyundai Kona Electric vehicle is displayed at the New York Auto Show in the Manhattan borough of New York City, New York, U.S., March 28, 2018. REUTERS/Brendan McDermid
14 May 2021 12:30AM (Updated:
14 May 2021 12:25PM)
Hyundai to invest $7.4b in US by 2025, will focus on electric cars, smart mobility
REUTERS/Kim Hong-Ji
May 14, 2021
South Korea’s Hyundai Motor Group said on Thursday it planned to invest $7.4 billion in the United States by 2025 to produce electric vehicles, upgrade production facilities, and further its investment in smart mobility solutions.
Hyundai’s announcement comes as US President Joe Biden’s administration prioritised a push toward electric cars, aiming to replace the 650,000 vehicles in federal fleets with US-made electric vehicles.
In January, Biden also signed an executive order aimed at imposing tougher rules on government procurement practices to increase purchases of American-made products, strengthening domestic manufacturing, and create markets for new technologies.
Analysts said Hyundai’s US investment was essential to take advantage of the Biden administration’s EV policies and to receive subsidies and tax incentives.
“If Hyundai seeks to fully leverage US EV policies, they need to pursue not only EV production but also source major auto parts in the United States,” Kevin Yoo, an analyst at eBEST Investment & Securities, said.
Mr Yoo added that it is up to how the South Korean car maker sources US-made batteries for its US EV production, raising potential further investment in the United States by top battery makers.
Hyundai’s announcement came before Mr Biden meets with South Korean President Moon Jae-in in Washington next week in talks that are expected to cover Covid-19 vaccines and other topics.
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SEOUL (Reuters) - Shares in Kia Corp rose as much as 8.1% on Friday after a South Korean online news site said there was still potential for the automaker to form a partnership with Apple Inc.
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Shares in Hyundai Motor Co and its affiliate Kia were roiled earlier this year after Hyundai initially confirmed early stage talks with the tech-giant on autonomous electric cars, but later said they were no longer in talks.
Online site Chosun Biz said on Friday that Apple and Kia had signed a memorandum of understanding (MOU) last year and had agreed to pursue cooperation in eight sectors, including electric vehicles. It said negotiations on electric vehicles had not been completely cancelled.