South Korea's largest car manufacturer Hyundai Motor Group said Thursday it plans to invest $7.4 billion in the United States by 2025 to produce electric vehicles, improve production facilities and develop smart mobility solutions.

Hyundai’s announcement comes as U.S. President Joe Biden’s administration prioritized a push toward electric cars, aiming to replace the 650,000 vehicles in federal fleets with U.S.-made electric vehicles.

Analysts said Hyundai’s U.S. investment was essential to take advantage of the Biden administration’s EV policies and to receive subsidies and tax incentives.

Source: https://www.reuters.com/business/autos-transportation/hyundai-motor-invest-74-bln-us-by-2025-2021-05-13/