South Korean automotive manufacturer Hyundai Motor Company has announced plans to invest nearly $9 billion to strengthen its position in the EV market, particularly in the United States.

Hyundai Group, which owns world-famous brands like Kia and Genesis in addition to Hyundai, has plans to invest 10.5 trillion won (roughly US$8.55 billion at the current exchange rate) in 2023 to further expand its range of electrified vehicles. As part of the plan, the automobile giant will also spend a significant amount to set up an EV factory in the U.S. state of Georgia. It is going to be the company’s first-ever EV-dedicated factory in North America.

Previously, the company had stated that it would spend roughly $5.5 billion on its new EV manufacturing plant in Georgia. The construction of the EV plant is expected to start before the end of current quarter. In that case, the company would have an amount of $3 billion left to be used for research & development (R&D) to facilitate the development of its current and future electrified cars and SUVs.

In response to a query, Hyundai Executive Vice President Seo Gang-Hyun told reporters, “Favorable foreign-exchange rates and higher sales of value-added cars led the growth for 2022.”

At present, the manufacturing giant is producing and selling a number of electric cars and SUVs under its various marques. The list of its main EVs includes the Hyundai Ioniq 5, Kia EV6, and Genesis GV60. However, it is still making a lot more internal combustion engine (ICE) models, many of which are being assembled at its factory in the U.S. state of Alabama.

With a new EV-dedicated factory in the U.S., along with strategic collaborations with local battery producers, Hyundai zero-emission vehicles will be eligible for the federal tax credits offered under the Inflation Reduction Act (IRA), which aims to increase mass adoption of EVs. Currently, none of the South Korean manufacturer’s EVs are eligible for the $7,500 tax credit. However, the company has plans to implement a leasing program under the latest iteration of the IRA.

For the current year, Hyundai has set an ambitious goal to sell at least 73,000 EVs in the U.S. and 330,000 EVs worldwide, up 150 per cent and 54 per cent, respectively, year-over-year.