Money Talks: The Electric Vehicle Revolution Trumps Red State Politics

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Oh the irony, it burns. The US state of Georgia falls into the pink aspect of the political spectrum, besides when the subject turns to attracting clear tech producers. The most recent information comes from Hyundai, which has simply introduced that its fashionable Ioniq 5 SUV would be the first electrical car to roll off the manufacturing line of the corporate’s new $7.5 billion manufacturing campus in Georgia.

The Hyundai Ioniq 5 Is A In style Electrical Automobile…

It stays to be seen whether or not or not Hyundai can nudge apart the present ruler of the electrical car roost within the US zero emission mobility market, that being Tesla. However, the Ioniq sequence has been a success within the US and globally.

Particularly, the Ioniq 5 SUV has pulled the rug out from underneath the naysayers of doom who’ve solid doubt on the electrical car market. There have been some glitches within the US market final yr and elsewhere around the globe, however EV sales began to pick up in January 2024 and the momentum has continued.

Globally, the Ioniq 5 is Exhibit A within the rebound of the electrical car market. “The Hyundai IONIQ 5’s sales numbers prove its popularity,” Hyundai acknowledged in a press launch dated June 18. “It is Hyundai’s highest volume EVwith sales up 43% so far in 2024, and an increase of 82% in May alone,” Hyundai added.

…And It Will Be Made In The USA

Anybody (raises hand) who loves small cars and tiny trucks could also be disenchanted by the selection of an SUV as Hyundai’s first US-made electrical car, however the market has spoken and it likes SUVs.

Within the June 18 announcement, Hyundai affirmed that its new Hyundai Motor Group Metaplant America will host the manufacturing of the 2025 Ioniq 5. That will come as shock, contemplating that the 2025 mannequin hasn’t had an official unveiling in North America but. However, Hyundai is leaping its personal gun.

“While the 2025 model of the popular all-electric SUV has yet to be officially unveiled for North America, HMGMA is currently training and preparing to begin production in the fourth quarter of this year,” Hyundai defined.

“The new plant will produce all trim lines (except IONIQ 5 N) and will eventually be the sole facility building IONIQ 5 models for the U.S. market,” the corporate added.

Observe The Cash To The Electrical Automobile Revolution

The Metaplant first got here to CleanTechnica’s consideration in 2022, because the nexus for Hyundai’s rising EV supply chain web in Georgia.

Within the new HMGMA announcement, Hyundai famous that it’s investing $7.59 billion to develop the brand new campus, situated in Ellabell, with the expectation of making 8,500 new direct jobs. “Additionally, Hyundai and SK On are building a $5 billion EV battery cell plant in Bartow County, Georgia that will employ 3,500 workers,” Hyundai additionally acknowledged.

Hyundai additionally drew consideration to a examine from the Center for Automotive Researchwhich calculated that Hyundai’s electrical car investments in Georgia will create virtually 40,000 jobs, attended by an annual determine for particular person earnings of an estimated $4.6 billion.

And, Extra Cash

Georgia is only one of many US states the place elected officers have been throwing rhetorical, legislative, and/or authorized bombs towards ESG (Atmosphere, Social, Governance) investing principleseven whereas their very own financial growth companies make investments hundreds of thousands of public {dollars} to draw new clear tech companies that intention to kill off fossil fuels (see extra ESG background here).

Hyundai is a living proof. “The state of Georgia and local governments are on track to give $2.1 billion in tax breaks and other incentives to Hyundai Motor Group after the South Korean automaker and a partner announced last month that it will invest an additional $2 billion at an electric vehicle complex it’s building in Georgia,” Related Press reported final September.

“Associated Press calculations show projected incentives will rise by more than $290 million from the $1.8 billion deal originally announced last year. Only $2.75 million of that represents additional cash from the state. The rest will come from increases in tax breaks,” AP added.

The Electrical Automobile Capital Of The Nation

Even with out the monetary incentives, Georgia has two belongings enticing to producers. One is a longstanding school-to-factory employee coaching and hiring program. The opposite is Georgia’s standing as a “right to work” state underneath rules handed in 1947. That makes it tough for employees to unionize, which signifies that employers can get pleasure from a extra compliant workforce. Automakers in Georgia have loved that benefit for many years. Now the torch has been handed to electrical autos, as indicated by the Georgia Division of Financial Growth.

“Building on the assets that make the state’s automotive industry successful, Georgia is rapidly developing as the capital of EV manufacturing for the nation,” enthuses GDEcD.

Along with Hyundai’s electrical car enterprise, GDEcD additionally notes that the Kia facility in West Level will start making the corporate’s new EV9 mannequin this yr.

One other electrical car maker on the GDEcD listing is Rivian, which introduced plans for a $5 billion manufacturing facility in Georgia again in 2021. That challenge received effectively into the location preparation part earlier than Rivian switched gears to deal with its EV manufacturing facility in Illinois, although the corporate has reportedly characterised the snag as a short lived one.

The Georgia Electrical Automobile Ecosystem Is Rising: Thanks, Inflation Discount Act

GDEcD can also be concentrating on the entire electrical car ecosystem. “Providing the full electric vehicle supply chain is critical to a truly sustainable future, and Georgia is rapidly expanding across multiple segments: cathode and anode manufacturing, chemical and mineral solutions, battery manufacturing, metals and aluminum manufacturing, and battery recycling,” the company notes.

Within the newest growth on that rating, earlier this yr the vitality storage startup Freyr Battery Inc. introduced that it’s relocating its dwelling base again to the US from Europe. The corporate cited “global tax developments and U.S. incentive programs for battery manufacturersconsidering recent changes in U.S. tax laws and federal incentive programs” as one key benefit of the transfer.

The redomiciling, as it’s known as, may even assist facilitate the development of Freyr’s new Giga America manufacturing facility in Coweta County, Georgia. Freyr introduced the location choice in 2022.

“The initial phase of Giga America is planned to be a cell production module of approximately 34 GWh based on the next-generation of 24M’s U.S.-based SemiSolid^TM production platform at an initial projected capital cost of $1.7 billion,” Freyr defined in a press assertion.

The corporate additionally name-checked the Inflation Discount Act as a key factor in assist of the challenge, stating that “with the recent passage of the Inflation Reduction Act, we expect U.S. demand for ESS, passenger EV and other electric mobility applications to grow rapidly over the next decade.”

“The total package of financial incentives for Giga America includes robust assistance collectively provided by The State of Georgia and Coweta County in addition to the expected production tax credits associated with the recently passed Inflation Reduction Act,” Freyr added.

That could be information to the Georgia state legislators who’ve been working to move payments aimed toward blocking monetary corporations that ascribe to ESG investing principles.

Maybe they didn’t get the electrical car memo. Be that as it might, in a company replace earlier this yr Freyr indicated that plans for the Giga America battery factory are transferring ahead.

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Picture (cropped): Hyundai plans to fabricate the Ioniq 5 electric SUV in Georgia, pink state politics or not (courtesy of Hyundai).