Hyundai to invest $5.5 billion on electric car factory construction in US

South Korean carmaker Hyundai Motor Group has confirmed reports about the construction of a plant for the production of electric vehicles in the United States.

The cost of the enterprise, which will be located near Savannah, is estimated at $5.5 billion. Georgia Governor Brian Kemp called the deal the largest economic development project in the state's history, Interfax reports, quoting Market Watch.

This will be the first Hyundai plant in the USA specializing in the assembly of electric vehicles, as well as in the production of car batteries. It will employ more than 8,000 people.

Construction is scheduled to start early next year, production will begin in 2025. The annual capacity of the enterprise is planned in the amount of 300,000 cars. The company did not say which models of cars the plant will produce.

Earlier, Hyundai promised to invest $7.4 billion in the United States by 2025, including in the production of electric vehicles, modernization of existing enterprises and technology development.

Last December, the American electric car manufacturer Rivian Automotive also announced plans to build a facility in Georgia. The $5 billion project should create 75,000 jobs.

Since the beginning of the year, Hyundai's quotes have declined by 10.3 per cent, while the Kospi stock index has lost 11.4 per cent.