Benzinga | May 14, 2021 03:04AM EDT

Hyundai Commits $7.4B To Make Electric Vehicles In US

Hyundai Motor Group, the South Korean multinational conglomerate which owns Hyundai Motor Co (OTC: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 (NASDAQ:TSLA), the early EV disruptor, scores of legacy automakers including General Motors Co (NYSE:GM), Ford Motor Co (NYSE:F) have now started investing billions of dollars to cater to the demand for EVs.

Chinese electric vehicle companies such as Nio Inc (NYSE:NIO), Li Auto (NASDAQ:LI), Xpeng Inc (NYSE: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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