Hyundai Motor Group has announced that it will spend thousands of people building a massive electric vehicle factory near Savannah, Georgia, in the US for $5.5 billion. Georgia's governor called it the largest economic development project in the state's history.

The announcement was made by Hyundai Motor Group CEO Jae-hoon Chang and Governor Brian Kemp at the site of the future factory in Blaine County.

Hyundai said it would employ at least 8,100 workers at its plant near the town of Ellabell, where it assembles electric vehicles and car batteries. The company and state officials said they expected suppliers to invest an additional $1 billion.

It will continue to bring wealth and opportunity to the region, which Kemp said he expects will have a knock-on effect, boosting commerce from Savannah's already thriving seaport to restaurants and convenience stores.

This is the second major electric vehicle plant announced in Georgia in less than a year. Rivian Automotive announced in December that it plans to invest $5 billion to build an electric truck factory in east Atlanta, which is expected to employ about 7,500 people.

Kemp declined to discuss details such as incentives and tax benefits Hyundai received when it set up a branch in Georgia. Previously, Rivian claimed to have received a "good deal" worth $1.5 billion.

Hyundai said it plans to speed up production and hopes to start producing cars at the facility in 2025.

The company will build the factory on 2,200 acres (890 hectares) of land that the state and partnering local governments bought about 40 kilometers inland from Savannah a year ago for $61 million US dollar price deal.

The land is adjacent to Interstate 16, which connects Savannah to Macon, and is not far from the intersection of Interstate 95, which crosses the east coast. It is also close to the Port of Savannah, the fourth busiest seaport in the United States.