Hyundai and Rivian are moving ahead with several EV manufacturing goals in Georgia.
Wednesday, July 20, 2022 | Chimniii Desk
After the regional economic development agency approved its portions of the contract on Tuesday, Hyundai Motor Co. (OTCPK:HYMLF) is closer to opening a $5.5B electric vehicle plant close to Savannah, Georgia. Tax breaks and other incentives' specifics have not yet been made public.
What is known is that in exchange for the at least 8,100 jobs Hyundai (OTCPK:HYMLF) has pledged for nearby counties, the joint development authority has agreed to forgo hundreds of millions of dollars in taxes. Before the state and Hyundai complete the contract, officials are not anticipated to disclose the specifics of the incentives package.
Hyundai is also projected to save hundreds of millions of dollars via sales tax exemptions on building supplies and machinery as part of the agreement.
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The South Korean manufacturer intends to begin building the facility the following year and start producing up to 300,000 vehicles annually by 2025.
According to reports, the incentive package is comparable to the $1.5 billion in tax benefits and spending that Rivian Automotive (NASDAQ:RIVN) received for its facility that makes electric vehicles. The corporation stressed that the recently announced employment losses will not have an effect on the production plans for Georgia. Beginning in 2025, RIVN plans to manufacture electric crossovers in Georgia.
When the Hyundai project was first announced two months ago, Georgia's governor, Brian Kemp, referred to it as the state's largest economic development pact ever. He has also been supportive of Rivian coming to Georgia.