Hyundai Motor Group Metaplant America, the first electric vehicle (EV)-dedicated plant being built by South Korean auto giant Hyundai Motor Group in Georgia, U.S., will begin pilot operations as early as April next year.

According to multiple sources from the automobile industry on Monday, Hyundai Motor Group shared the construction progress of the EV plant and its plan with the state of Georgia recently.

Hyundai Motor Group told the officials that the Metaplant will officially begin to churn out EVs in January 2025 but the first sample batch will be produced in April next year.

Hyundai Motor Group is working to bring forward the construction completion period of the Metaplant by nearly one year from the first half of 2025 to the second half of 2024 in an effort to respond to the U.S. Inflation Reduction Act.

The plan suggests the company is aiming to bring some of the locally-produced EV models of Hyundai Motor Co. and Kia Corp. to the U.S. market as early as possible.

According to Hyundai Motor Group, the Metaplant will have an annual production capacity of between 300,000 and 500,000 cars. Hyundai Motor Group has plans to produce 840,000 EVs, or 26 percent of its entire global sales target, in the U.S. in 2030.

The industry estimates the target to be lifted to more than 1 million units.

Hyundai Motor Group’s swift acceleration into the U.S. market comes as it is dealing with the IRA that specifies little to no subsidies to Hyundai Motor Group brands, creating an uneven playing field with other global rivals.

“Hyundai Motor Group’s market share may fall sharply as it is not subject to any subsidies, when U.S. automakers like Ford Motor Co. and General Motors Co. join the EV price competition led by top Tesla Inc.,” said an unnamed industry official.

As part of efforts to defend its market share, Hyundai Motor Group is focusing on expanding the sales of commercial EVs such as for leases and rental cars that are eligible for up to $7,500 subsidy benefits.

The Korean automaker is also aiming at its premium segment. To qualify for the tax credit for purchasing an EV in the U.S., buyers must have an annual income of no more than $300,000 for couples and $150,000 for individuals. The company plans to boost marketing that targets high-income buyers that do not qualify for the subsidies under the IRA.

By Lee Yu-sup and Han Yubin

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