Georgia Taxpayers to Provide $1.8 Billion in Incentives to Hyundai for New Savannah Electric Vehicle Plant | Georgia
(The Center Square) — Georgian governments and development authorities have offered Hyundai Motor Group more than $1.8 billion in incentives.
In May, Hyundai said it had selected Georgia for its first fully dedicated electric vehicle and battery manufacturing facility. The plan calls for Hyundai to invest more than $5.5 billion to build the facility in the 2,923-acre Bryan County megasite along Interstate 16, while unaffiliated Hyundai suppliers plan to invest about $1 billion in the project.
Hyundai received a 26-year property tax abatement and will begin making “ad valorem property tax payments on leases” from 2026 after the initial construction of its facility is completed. State officials said Hyundai would pay more than $357 million during the period.
As part of the agreement, Georgia will provide Hyundai with $50 million in regional economic assistance. to agree – distributed in two installments of 25 million dollars – to help pay for the development of the site, the purchases of buildings or equipment. It will also provide a $112.6 million grant to the JDA Savannah Harbor-Interstate 16 Corridor for wetland mitigation, additional land acquisition, and site clearing and grading.
The state will provide a dedicated Quick Start training center, which is expected to cost $62.5 million. The Peach State will also cover operating costs and training services for five years, at an estimated cost of nearly $5 million per year.
Economic development officials plan to ask state legislators to allocate an additional $10.6 million to the Georgia Technical College System to expand the existing Georgia Quick Start Advanced Manufacturing Training Center in Savannah.
The Georgia Department of Transportation plans to provide $200 million for road improvements. Additionally, nearly $6.9 million in state funding will go toward a railroad extension to the project site for the Georgia Central Railway, a subsidiary of Genesee & Wyoming.
According to official documents, the Savannah Harbor-Interstate 16 Joint Development Authority is expected to invest more than $71.8 million. The JDA paid $18 million to purchase the original three BCMS plots, while a state grant funded an additional $43 million to purchase the site.
Officials said the project would create 8,100 jobs with an average salary of $58,105. Under the agreement, by the end of 2031, Hyundai and its suppliers must meet 80% of their commitment to invest $5.5 billion and create 8,100; they must maintain the jobs until 2048.
“When fully staffed, the estimated payroll generated by the HMGMA project alone will reach $4.7 billion over 10 years,” Georgia Department of Economic Development Commissioner Pat Wilson said in a statement to The Center Square. “As we work together to deliver a state-of-the-art facility in Bryan County that will provide well-paying jobs for Georgians, we know Hyundai Motor Group will give back to the region, investing in our schools, families and communities, and we are grateful for these planned investments.”
Georgian officials point to their “partnership history” with Hyundai, saying it is “a window into the greater community and the business partner the company will be for decades to come.” Hyundai owns a majority stake in Kia Corporation, which in 2009 agreed to invest $1.2 billion in a manufacturing plant in West Point and create 2,500 jobs.