Hyundai Motor Group confirmed Friday that it will spend $5.5 billion to build a massive EV factory near Savannah that will employ thousands of Georgia’s governors, in what he called the largest economic development project in the state’s history.

State and local officials bought a flat, expansive piece of land last year for $61 million in hopes of attracting a major manufacturer, Hyundai Motor Group CEO Jaehoon Chang and Gov. Brian Kemp announced at the site of the future factory in Bryan County.

“Hard-working Georgians will have the opportunity to work in high-paying, advanced manufacturing jobs with a great company,” Governor Brian Kemp said in an interview.

Hyundai said it would employ at least 8,100 workers at a “factory near the unincorporated town of Ellabell, where EVs and car batteries are assembled. The company and state officials said they expect suppliers to invest an additional $1 billion.” That will “continue to bring wealth and opportunity to the region,” Kemp said, predicting there will be a ripple effect, shifting businesses from Savannah’s already booming seaport to restaurants and convenience stores.

The news came during President Joe Biden’s visit to South Korea. He will meet the Hyundai chief executive in Seoul on Sunday. The president’s NSA Jack Sullivan told reporters that Biden “will have the opportunity to express gratitude for this major investment that will be made in the US.”

The timing was lucky for Kemp, who was challenged by former US Senator David Perdue in the Republican primary to be decided on Tuesday. This is the second major EV plant announced in Georgia in less than a year. Rivian Automotive announced in December that it plans to build a $5 billion electric truck factory east of Atlanta that is expected to employ about 7,500 workers.

Kemp declined to discuss the details of the incentives and tax cuts the company has set up in Georgia. Rivian received and packaged for $1.5 billion. Hyundai said it plans to move ahead with construction quickly and hopes to start producing cars in 2025.

The company will build the factory on 2,200 acres (890 hectares) of land that the state and partner local governments purchased about 40 kilometres inland from Savannah a year ago. Bryan County and neighbouring Chatham County, which includes Savannah, each contributed $9 million to the $61 million purchase price.

The land is adjacent to Interstate 16, which connects Savannah to Macon, not far from its intersection with Interstate 95, which runs across the East Coast. It is also close to the Port of Savannah, the fourth busiest seaport in the US.

Camp predicts Hyundai will be one of the biggest customers for the Port of Savannah, which has seen explosive growth in recent years. Hyundai Motor Group sells vehicles under the Hyundai and Kia brands. The South Korean automaker has opened two US assembly plants in Montgomery, Alabama and West Point, Georgia.

Perdue plans to campaign Friday afternoon in Savannah with former Alaska governor and Republican vice-presidential candidate Sarah Palin. Perdue accused Kemp of trying to use Rivian’s deal and its huge lure to buy his re-election. Kemp brushed aside the criticism, pointing to Perdue’s record as a company executive outsourcing US jobs to overseas manufacturers.

The governor said the incentives help Georgia compete with states like South Carolina, Tennessee and Texas for large projects. He noted that the Kia factory at West Point fills a void when the local textile industry closed years ago. “You’ve seen downtowns that used to be ghost towns, and now they’re vibrant neighbourhoods,” Kemp said. He added: “These investments will benefit us for the next 20 to 30 years.