Hyundai Motor Group is committing $7.4 billion in the U.S. by 2025 to produce electric vehicles.
The company said further details would be announced later, such as what models and how much the company is committing to the effort at its Montgomery plant. The money will be used to scale up production facilities.
Hyundai Motor Group has plants in Montgomery and its Kia facility in West Point, Ga.
According to a company announcement, Hyundai plans to offer a “suite of American-made electric vehicles to U.S. consumers starting next year.” The company said it will “monitor the market conditions and U.S. government EV policy to finalize its plan.”
Hyundai Motor Manufacturing Alabama, located in Montgomery, employs more than 3,000 people and turns out the Elantra and Sonata sedans and the Santa Fe and Tucson SUVs. Production on the Santa Cruz pickup begins this month after a $410 million expansion.
Hyundai isn’t the first automaker in Alabama to transition toward electric vehicles. Mercedes-Benz committed to begin producing electric SUVs at its Tuscaloosa County plant in 2022. The plant, which has been in preparation for the move for the past four years, will produce the EQE SUV and EQS SUV on the same line with SUVs with conventional and plug-in hybrid drives.
In announcing its move, Hyundai Motor North America president and CEO José Muñoz said the plan “demonstrates our deep commitment to the U.S. market, our dealers and customers.”
“Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up,” he said.