South Korea's Hyundai Motor Group recently announced a $7.4 billion investment in the U.S. with the intention of beginning to produce electric vehicles and improve production facilities, according to a report by Reuters.
Kevin Yoo, an analyst at eBEST Investment & Securities, said Hyundai's American investment was essential to take advantage of the Biden administration's electrical vehicle (EV) policies and to receive subsidies and tax incentives.
"If Hyundai seeks to fully leverage U.S. EV policies, they need to pursue not only EV production, but also sourcing major auto parts in the United States," Yoo told Reuters.
President Joe Biden's administration has prioritized the transition to electric car usage, with the goal of replacing 650,000 government fleet vehicles with American-made electric cars by 2025.
Biden signed an executive order in January to tighten government procurement processes in order to increase purchases of American-made goods, support local manufacturing and expand markets for technological innovations.
The president has also proposed $174 billion in increased spending to promote electric cars and the charging infrastructure needed to maintain them.
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