Hyundai Commits $7.4B To Make Electric Vehicles In US

Hyundai Motor Group, the South Korean multinational conglomerate which owns Hyundai Motor Co HYMTF and its sister concern Kia Motors, said on Thursday it will invest $7.4 billion by 2025 to make electric vehicles, upgrade production facilities, and further fund smart mobility solutions in the United States.

What Happened: The Hyundai U.S. subsidiary will begin electric vehicle production in 2022 at its Alabama manufacturing facility.  

Hyundai currently sells the battery-powered Kona and Ioniq in the U.S. and is planning to launch Ioniq 5, a new electric vehicle later this year. 

Why It Matters: The development comes amid President Joe Biden prioritizing a $174 billion electric vehicle push to ensure faster adoption of green energy along with a pledge to replace the federal government's 650,000 vehicle motor pool with EVs.

See Also: Analyst Expects Tesla, GM To See EV Tax Credits Restored With Biden Kicking Off US 'Green Tidal Wave'

Besides Tesla Inc TSLA, the early EV disruptor, scores of legacy automakers including General Motors Co GM, Ford Motor Co F have now started investing billions of dollars to cater to the demand for EVs.

Chinese electric vehicle companies such as Nio Inc NIO, Li Auto LI, Xpeng Inc XPEV are also eyeing the international markets.

See Also: Tesla Remains Top Player In US EV Market But Its Dominance Is Shrinking: What You Should Know

Price Action: Shares of Hyundai Motor closed 1.4% higher at $49.38 on Thursday. 

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