Hanon Systems, a renowned auto parts manufacturer from South Korea, has exciting plans to invest a staggering amount of $170 million to establish a cutting-edge factory in Tennessee. This strategic move by Hanon Systems aims to capitalize on the growing demand for thermal solutions in the electric vehicle (EV) industry. The factory will cater to EV makers with manufacturing operations in the United States, while simultaneously creating an impressive 600 job opportunities. The venture promises to solidify Hanon Systems’ position as a key player in the industry, positioning them for future success.
SEOUL, Aug. 3 (UPI) — Hanon Systems, South Korea’s leading auto parts manufacturer, recently announced its intention to construct a state-of-the-art manufacturing facility in Tennessee. This ambitious project is set to generate 600 highly sought-after jobs, further boosting the local economy and providing valuable employment opportunities for residents.
A substantial investment of $170 million has been allocated towards the establishment of this production facility, solely dedicated to supplying advanced thermal solutions to American-based EV manufacturers. Hanon Systems aims to strengthen its foothold in the global market by catering to the increasing demand within the EV industry.
Hanon Systems is committed to offering an extensive range of high-quality products through its Tennessee factory. These products will encompass essential components such as heating ventilation, powertrain cooling, compressors, electronics, air conditioning, fluid pressure, and fluid transport. By providing comprehensive solutions, Hanon Systems intends to meet the evolving needs of EV manufacturers, contributing to the growth of the industry.
Prior to this groundbreaking endeavor, Hanon Systems made headlines with a significant investment of $40 million in a Georgia-based plant. This facility focuses on producing parts exclusively designed for electric vehicles manufactured by globally renowned automakers, including Hyundai and Ford. The expansion of Hanon Systems’ operations highlights their dedication to staying at the forefront of innovation in the EV sector.
Tennessee, known for its thriving automotive industry, has attracted various remarkable investments from manufacturers of automobiles and components, including several Korean companies. The decision made by Hanon Systems to invest a substantial amount in Loudon County, Tennessee, showcases the state’s unparalleled business climate, flourishing economy, and the presence of a highly skilled workforce. Tennessee Governor Bill Lee expressed his gratitude to Hanon Systems for choosing Tennessee, acknowledging the tremendous opportunities the investment will create for the region and celebrating the addition of 600 new jobs.
In 2021, South Korean battery maker LG Energy Solution partnered with General Motors to establish a groundbreaking $2.3 billion battery plant in Tennessee. This collaboration signifies the state’s growing importance as a hub for advanced battery manufacturing. Additionally, LG Energy Solution and General Motors embarked on a separate $3.2 billion project last year, focusing on the construction of a cathode production facility. These initiatives further demonstrate the Korean companies’ commitment to establishing state-of-the-art facilities in the United States, driven by the prospect of qualifying for the country’s tax credits introduced through the Inflation Reduction Act.
Introduced last year, the Inflation Reduction Act provides enticing tax credits for electric vehicles manufactured in North America. In order to avail these incentives, Korean companies, like Hanon Systems, are compelled to assemble their electric cars in North America. This requirement is fostering increased investment in the United States and driving the growth of the EV industry.
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