Hyundai Motor Group confirmed Thursday that it will move forward with plans to expand its Georgia plant, just weeks after an immigration raid temporarily delayed the opening of an electric vehicle battery facility at the site.
As part of a broader investment strategy, Hyundai said it will spend $2.7 billion over the next three years to increase production capacity at the Ellabell facility by 200,000 vehicles, bringing total annual output to 500,000. The expansion was first announced in March during the grand opening of the plant west of Savannah. In August, Hyundai also revealed plans to invest an additional $5 billion across the United States. However, the recent raid, which resulted in the arrests of more than 300 South Korean nationals, sparked questions about the feasibility and timing of foreign investment in the U.S.
Hyundai plans to produce 10 models of electric and hybrid vehicles at Ellabell, up from the current two, as the plant scales up production. Globally, the automaker aims to increase output to 5.6 million vehicles annually by 2030, with 60% of those expected to be electric or hybrid, targeting markets in South Korea, North America, and Europe. Hyundai also intends to manufacture more than 80% of the vehicles sold in the U.S. domestically by 2030, up from 60% today. The plant will, for the first time, produce a mid-sized pickup truck in addition to the Santa Cruz compact pickup, which debuted in 2021.
CEO José Muñoz noted that the ICE raid will delay the opening of the battery plant by approximately two to three months. Spokesperson Michael Stewart said Thursday that the facility is now expected to start operations in the first half of 2026.
The raid has prompted ongoing efforts by both Hyundai executives and Georgia officials to stabilize the situation, which briefly escalated into a diplomatic concern between South Korea and the U.S. Republican Gov. Brian Kemp expressed confidence that Georgia’s business advantages would continue to attract foreign investment, suggesting the incident might even streamline visa processes for South Korean workers involved in U.S. operations.
Brent Stubbs, chief administrative officer of the Ellabell site, reinforced Hyundai’s commitment to the state in an opinion piece for The Atlanta Journal-Constitution: “This situation doesn’t change our plans to continue expanding and localizing in the United States. Our investments in America are part of a long-term strategic plan.”
The $2.7 billion investment will go toward expanding production capacity at Ellabell and affiliated facilities, Stewart said. Hyundai and its onsite affiliates currently employ 3,129 workers at the Georgia site.
Hyundai and its battery joint-venture partner, LG Energy Solution, have previously announced a total of $12.6 billion in investments for the Georgia facility, with a commitment to hire at least 8,500 workers by 2031. State and local governments have promised $2.1 billion in tax incentives and other support to aid the project.
The Ellabell expansion forms the largest component of Hyundai’s global strategy to increase production by 1.2 million vehicles annually. Additional capacity gains include 250,000 vehicles in Pune, India; 200,000 at Hyundai’s electric vehicle plant in Ulsan, South Korea; and parts for assembly of 250,000 more vehicles in Saudi Arabia, Vietnam, and North Africa.
Hyundai also reaffirmed previous plans to increase its investment in robotics and said it will launch extended-range electric vehicles by 2027, featuring gasoline-powered motors to extend the range of electric batteries to more than 600 miles (960 kilometers).
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