Hyundai Mobis will receive a $32 million subsidy from the U.S. government to support its electrification parts factory in Toledo, Ohio. This subsidy is part of the Biden administration’s larger initiative, announced on July 11, to allocate $1.7 billion in grants for converting aging auto and parts plants across eight Midwestern states, including Michigan and Ohio, into electrification factories.
The Ohio plant will produce power electric (PE) systems and battery system assemblies (BSAs), essential components for electrification. These products will be supplied to Stellantis, a U.S. automaker, for the production of plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs).
In addition to Hyundai Mobis, other major companies such as General Motors (GM), Stellantis, Harley-Davidson, Volvo, and ZF are recipients of the electrification subsidies. This funding underscores the U.S. government’s commitment to supporting the transition to electric mobility and revitalizing the Rust Belt’s industrial base.
Meanwhile, Hyundai Motor Group’s new EV plant in Georgia, Hyundai Motor Group Metaplant America (HMGMA), has received preliminary approval from Georgian environmental authorities to use 6 million gallons of groundwater per day. The permit is expected to be finalized in August following a public hearing. HMGMA aims to begin operations in the fourth quarter of this year, with the production of the IONIQ 5, Hyundai’s flagship electric vehicle, slated to start in October. The plant will also produce other EV models and hybrids in the future, further expanding Hyundai’s footprint in the U.S. electric vehicle market.
