Hyundai Motor Company (OTC: HYMTF) is planning to break ground on a $5.5 billion electric vehicle and battery plant in the U.S. on October 25.
The automaker, Reuters reported, is expected to begin commercial production in the first half of 2025 with an annual capacity of 300,000 units.
The metaplant, in Savannah, Georgia, is part of Hyundai's commitment of $10 billion by 2025 to foster future mobility in the U.S., including production of EVs.
President Biden's Inflation Reduction Act that allows only EVs assembled in North America to qualify for tax credits in the U.S. excluded Hyundai as it does not manufacture its vehicles in the U.S.
The law made about 70% of EVs immediately ineligible for the tax credits of up to $7,500 per vehicle, qualifying only about 20 EVs.
Hyundai's latest move is expected to address the subsidy issue.
Price Action: HYMTF shares closed at $27.50 on Friday.
Photo Via Company
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.