A newly established Georgia facility for producing the Hyundai Ioniq 5 and Ioniq 9 models runs entirely on solar power and is heavily automated with robotics. This setup will shield Hyundai from potential tariff issues but won’t eliminate them altogether.
At the Hyundai Motor Group’s newest Metaplant Just outside of Savannah, Georgia, employees put together the components. Ioniq 5 and Ioniq 9 Electric crossover systems without hearing protection because the facility was engineered to remain extremely silent.
Self-guided systems navigate the facility transporting parts, semi-assembled vehicles, and finished products across different areas. Boston Dynamics’ robot canine, Spot, patrols the area conducting inspections of car welds. The extensive solar panel installation atop the parking lot is expected to provide approximately 5% of the manufacturing site’s energy needs.
The Metaplant stands as one of the most sophisticated automobile manufacturing facilities globally, not just within the United States. It serves as the cornerstone of Hyundai’s growth strategy in the American market. Moreover, this facility will play a vital role in ensuring that their many investments in electric vehicles yield substantial returns over time.
Hyundai Georgia Metaplant
More significantly, the Metaplant is well-positioned for success as it opens at just the right moment and location. Producing electric vehicles in America assists export-reliant Hyundai in shielding itself from potential policies under President Donald Trump's administration. proposed 25% tariffs On vehicles and components that are brought in from abroad.
"This is something remarkable today," Hyundai Motor Company's global CEO and president José Muñoz said last week at the plant's opening. "Before we even start, it's already planned for expansion, similar to a secondary growth , featuring an annual production of 500,000 cars and two battery facilities."
Hyundai Georgia Metaplant
Despite the investment of $12.6 billion in Georgia and the anticipated creation of around 14,000 jobs due to Hyundai's Metaplant project, the company remains vulnerable to tariffs. The construction of this facility, along with the significant financial and temporal investments required for its development, highlights the intricate challenges faced by all automobile manufacturers amid efforts by President Trump to redefine international trade dynamics. Potentially, by the end of this week .
Cutting-Edge Factory, American-Made EVs
Among all the traditionally recognized automakers, the Hyundai Motor Group has reportedly achieved the greatest success in the United States when it comes to electric vehicles. Their sales of battery-electric cars have been second place behind Tesla in America last year , with models such as the Ioniq 5 receiving extensive praise from critics and achieving significant popularity. elusive profits as well. Moreover, its hybrid gameplay is robust.
Hyundai Metaplant
Almost all of this success can be attributed to exported vehicles. Although Hyundai and Kia established plants in Alabama and Georgia in 2005 and 2010, respectively, all of their electric vehicles so far (with the exception of the limited-edition models) have been produced elsewhere. Electrified Genesis GV70 ) have been exported from South Korea. Up until recently, approximately 35% of Hyundai and Kia's worldwide production came from their American facilities, as reported by Korea’s Chosun Daily This makes Hyundai susceptible to issues like fluctuating currencies, supply chain disruptions, lengthy shipping durations, and various other hurdles as it expands.
The Metaplant, and other U.S. investments from the conglomerate, aim to fix those issues by planting a flag in its most important market. By making cars and components locally, it can tailor output to local demand, bring down prices and skirt certain tariff costs. And it should qualify The Ioniq 5 and Ioniq 9 qualify for U.S. electric vehicle tax credits for as long as this program remains active.
Hyundai Georgia Metaplant
Hyundai Georgia Metaplant
Hyundai Georgia Metaplant
In the automotive sector, constructing completely new manufacturing plants from scratch is relatively uncommon because they require significant scale and substantial investment. Prior to establishing its Austin, Texas Gigafactory, Tesla initiated operations by refurbishing an older facility jointly owned by General Motors and Toyota in California. Similarly, although Rivian is negotiating for a new site in Georgia, it presently produces electric vehicles at a previously used Mitsubishi plant located in Illinois. The recent passage of IRA tax incentives has spurred numerous ongoing efforts aimed at building additional U.S.-based electric vehicle and battery production facilities, reigniting enthusiasm for such ventures.
Still, Muñoz emphasizes that the Metaplant was not solely dependent on electric vehicle tax incentives, which were part of the Biden administration’s Inflation Reduction Act. The planning for this facility started even before then, during the initial Trump administration. “The United States has emerged as, by far, the biggest market for our company,” Muñoz stated.
The impressive scale of the Metaplant embodies these aspirations. Spanning across 16 million square feet of manufacturing space, it dominates the landscape visible from U.S. Interstate 16 near Savannah, making even an NFL stadium appear small in comparison—like a mere high school football field. As you drive past, Ioniq 5s and 9s can be spotted gliding down a conveyor belt within a skybridge connecting the paint shop and the final assembly area. Initially, this facility has the capability to manufacture up to 300,000 vehicles per year. Additionally, with further expansion plans, the site aims to add another 200,000 units of production capacity, which includes hybrid models and undisclosed future offerings from Kia and Genesis.
Hyundai Georgia Metaplant
The facility represents cutting-edge technology for contemporary automobile manufacturing plants. According to Hyundai representatives, artificial intelligence optimizes every logistical process here. Components will be moved using hydrogen fuel cell-powered vehicles. Additionally, the solar arrays installed in the parking area should produce 5.2 megawatts of power annually. Automation permeates nearly everything; robotic systems vastly surpass human numbers at this site. In summary, the Metaplant incorporates numerous advanced technologies not commonly seen before. seen exclusively at Hyundai's Singapore "microfactory" to an even greater extent.
Even so, the threat of tariffs—not to mention the potential loss of EV tax credits—loomed over the plant last week as dignitaries from around the world christened Georgia's largest-ever economic development project.
Hyundai Georgia Metaplant
The Tariff Conundrum
Yet not even copious U.S. investments, or even being an American company, will likely protect any automaker from 25% tariffs on imported vehicles and imported parts, as Trump says will go into effect on Wednesday. Broadly, price increases of around $4,000 to $10,000 are expected for most vehicles, and $12,000 or more for EVs, a recent Anderson Economic Group report said.
Like essentially all car companies, Hyundai has not disclosed how much its car prices could increase once those tariffs go into effect. But take the Metaplant's Ioniq 5 as an example. A window sticker for the 2024 model year of Ioniq 5 , a Korean-built example of the EV crossover, lists just 1% of parts as being made in the U.S. and Canada. The rest—or at least, 95% of it—was sourced from Korea.
Although the Metaplant celebrated its grand opening last week, the manufacturing of the U.S.-produced 2025 Ioniq 5 began several months ago, with these electric vehicles already available for purchase. A sticker for that vehicle states that 29% of the components are from the United States, 29% come from Korea, and 33% originate from Hungary. This last portion includes the vehicle’s battery, which is an SK On product manufactured in Hungary. Nevertheless, Hyundai representatives will soon provide more information. stated that these batteries will be manufactured in the USA In theory, this could increase its U.S.-produced components to over 60%. (As of now, Hyundai representatives have not commented on the vehicle’s component sources, and since the Ioniq 9 is quite recent, details regarding its composition remain undisclosed.)
Nevertheless, the remaining 29% of components might lead to a higher cost for the Ioniq 5 should tariffs cause an uptick in pricing. At present, the base price for a 2025 Ioniq 5 stands at $42,500, not including destination charges. Consequently, even though the Metaplant appears to fulfill Trump’s objectives—producing American vehicles using solely American labor and materials—not one car sold within the United States consists entirely of domestically sourced elements.
Hyundai Georgia Metaplant
Admittedly, this strategy puts Hyundai in a much stronger position compared to other car manufacturers. For instance, the Volkswagen Group only operates one plant in the United States for its flagship brand; however, numerous vehicles sold here originate from Mexico. Additionally, Audi products imported into the country include units from both Mexico and Europe, whereas every model produced by Porsche comes from Europe. Mazda lacks significant production facilities within the U.S., and although Nissan performs somewhat better, these new tariffs pose financial challenges during an unstable period for the company.
As the Wall Street Journal As reported today, despite having a facility in Alabama, Mercedes-Benz’s U.S. content contribution remains significantly lower compared to Hyundai’s, and unlike Hyundai, it isn’t a high-volume producer. In contrast, General Motors, Ford, and Stellantis largely rely on manufacturing from Canada and Mexico, which means they would also be greatly affected should tariffs come into play.
In the end, it's difficult to identify any beneficiaries from such stringent tariffs, even among consumers. These possible price hikes come at a moment when most Americans' bank accounts are already being compressed firmly. Although Trump has stated that he believes the tariffs will be " permanent," he has additionally indicated he would settle for some kind of deal with car-producing countries as well.
Hyundai Georgia Metaplant
It's difficult to parse what this all means for Hyundai in the interim, as is the case with most car companies. Even with tariff-driven cost increases, the Metaplant could also allow the automaker to deliver some of the most affordably priced EVs on the market, especially if other electric options become so expensive as to be untenable in the market.
Muñoz stated that regardless of what occurs, the investment in America is intended to be long-lasting. Similar to how they produce both hybrid vehicles and electric cars at their facilities, this approach enables Hyundai to remain adaptable. He mentioned, “Our aim is to swiftly realign the complete supply chain.” During the pandemic, he recalled, the firm outperformed many competitors relatively speaking due to its agility and prompt adjustments when necessary.
Despite all the time and resources invested, it might still require repetition in the future.
Contact the author: patrick.george@insideevs.com
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