June 08, 2023 12:45
Hyundai and SK On will get about US$700 million in incentives for an electric-car battery plant they are building in the U.S. state of Georgia. That is some 14 percent of their investment of $5 billion.
The announcement comes amid fierce competition among state governments in the U.S. to lure investors as global companies seek to build EV plants in America in response to the protectionist Inflation Reduction Act.
The Atlanta Journal Constitution reported on Tuesday Hyundai and SK "could receive a total of about $700 million in grants, tax breaks, free infrastructure and other incentives from state and local governments to build a $5 billion battery factory in Bartow County" over the next 25 years.
They include free infrastructure like water treatment facilities worth $46 million and a road worth $6 million.
The plant is to start operations by 2025 with an annual capacity of 35 GWh of batteries, enough for about 300,000 EVs. Battery cells will be supplied to a Kia plant in Georgia and a Hyundai plant in Alabama.
"It's expected to employ at least 3,750 workers with an average wage of nearly $53,000," the daily added.
Another joint venture battery plant to be built with a $3.5 billion investment by Samsung SDI and GM stands to receive a total of $332.9 million in tax incentives from the Indiana state government over the next 15 years.
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