Hyundai asks US state of Georgia for more incentives
Hyung-Kyu Kim and Il-Gue Kim
Aug 29, 2022 (Gmt+09:00)
Hyundai Motor Co. discussed additional incentives on its planned electric vehicle plant in Georgia with the US state's government as the leading South Korean automaker is seeking measures to counter Washington’s decision to remove tax credits for EVs made outside of North America.
Hyundai Motor Group Chairman Chung Euisun visited Georgia and met state officials to talk about extra benefits before it completes the projected factory in Bryan County, on the Georgia coast just southwest of Savannah, according to industry sources on Monday.
“As far as I know, they discussed how the Georgia government can compensate Hyundai for not receiving the federal tax credit of $7,500 per unit,” said one of the sources with direct knowledge of the matter.
The automaker is currently in talks with LG Energy Solution Ltd., a major global battery maker, on a joint US EV cell factory likely to be established in the state.
MEASURES TO COUNTER IRA
The results of the negotiations between Hyundai and the Georgia state government could lead to a revision in the automotive group's EV production plans, industry sources said.
South Korea’s government also began taking measures. The country dispatched a delegation composed of senior officials from the trade, finance and foreign ministries to convey the government and industry worries about the law’s implementation.
The delegation plans to discuss supplementary measures with key authorities such as the US Trade Representative and the Department of the Treasury and the Department of Commerce in Washington from Aug. 29 to Aug. 31.
Write to Hyung-Kyu Kim and Il-Gue Kim at khk@hankyung.com Jongwoo Cheon edited this article.