South Korean car parts manufacturer Hyundai Mobis has secured $940m in loans to build new battery system assembly and power electric system factories in the US.
The facilities will be built in four different locations, including in Alabama and Georgia, in response to the growing demand from the global electrification market.
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“With this funding, it is anticipated that the electrification projects in North America will progress as planned,” the company said in a statement.
Currently, Hyundai Mobis has production hubs in nine locations globally (six in South Korea and three overseas). Nissan said it has plans to expand production globally this year, with the company launching plans in June to invest $60m in a new 33,000m² facility in Bekasi, Indonesia. The new plant will supply battery systems for flagship electric vehicle models.
Ever since the US Congress passed the Inflation Reduction Act in August 2022, several US states have benefited from multiple investment plans coming from abroad. On the anniversary of the act, US President Joe Biden said the law had managed to create an estimated 170,000 clean energy jobs, with estimates that the number will reach approximately 1.5 million over the next decade.
“You know, just don’t take it from me. The CEO of US Steel called the Inflation Reduction Act ‘Manufacturing’ – he called it the ‘Manufacturing Renaissance Act’ because it’s bringing jobs back to America, manufacturing here in America. Made in America,” Biden said in a press conference.
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By GlobalDataOther automotive manufacturers besides Hyundai have recently taken the stage with their investment announcements. On 1 November, Toyota said it would spend $8bn to expand its battery plant in North Carolina amid continuous US economic growth.
Last year, in October, Hyundai Mobis allocated $1.3bn to create new electrification production hubs in North America by the next decade.
