South Korea's largest automaker, Hyundai Motor, is reportedly considering speeding up the construction of its electric vehicle(EV) plant in the United States due to a new U.S. law excluding EVs built outside North America from tax breaks.

According to local industry sources on Monday, Hyundai is giving serious consideration to advancing the commencement of construction of its EV plant in the state of Georgia to later this year, possibly October.

The automaker initially planned to start construction in the first half of next year with a goal of beginning vehicle production in the first half of 2025.

If the construction starts earlier, the completion of the plant is likely to come in the second half of 2024.

The reported move is apparently due to the U.S. Inflation Reduction Act, which calls for expanding tax subsidies for EV purchases, but only for EVs assembled in North America. The act is expected to strike a blow to Hyundai and other South Korean automakers as they are no longer eligible for tax credits.