Hyundai Motor Group said Friday it will invest 8.1 trillion won ($7.4 billion) in the United States by 2025 to produce electric vehicles, improve production facilities and increase its presence in the smart mobility solutions area.

Hyundai Motor Co., the flagship of the country's top automaking group, plans to produce EVs in its Alabama plant starting next year and its affiliate Kia Corp. also has a plan to roll out EVs in its Georgia plant, Hyundai Motor America said in a statement.

Hyundai and Kia will finalize their plan to upgrade their US plants and expand their local EV production depending on the market conditions and US government EV policy, it said.

"Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product lineup," Jose Munoz, president and CEO of Hyundai Motor North America, said in a statement.

Kia North America President Sean Yoon said, "One key element of Kia's transformation is transitioning from the internal combustion engine to electrification."

The auto giant didn't provide the investment breakdown.

Hyundai announced its investment plans ahead of President Moon Jae-in's meeting with US President Joe Biden in Washington next week.

The South Korean automotive group expects the investment to enhance its competitiveness by prioritizing future mobility technologies, including electrification and hydrogen energy.

The automaking group also said it will work with the US government and business partners to expand the US hydrogen energy ecosystem and offer its NEXO hydrogen fuel cell electric vehicles.

The group said it will also invest in robotics and autonomous driving technologies to strengthen its presence in the world's most important automobile market. (Yonhap)