Hyundai, LG plan US$4.3 billion electric vehicle battery plant in US
Published on: Friday, May 26, 2023
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Bloomberg, FMT
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According to a statement, the Hyundai Group and LG Energy will invest equally in the Georgia facility initiative.
The Hyundai group — which includes Hyundai Motor Co, Kia Corp, and Genesis — and LG Energy will split the investment 50-50, according to a statement Friday. The plant, in Bryan County, Georgia, will have an annual capacity of 30 GWh, enough to power 300,000 electric vehicles, the carmaker said.
Construction will start in the second half of 2023 and production will begin as early as the end of 2025.
“We will create a strong foundation to lead the global EV transition through establishing a new EV battery cell plant with LG Energy Solution, a leading global battery producer and long-time partner,” Jaehoon Chang, chief executive officer of Hyundai Motor Co said in the statement.
Automakers and EV battery makers alike are increasingly rushing to make investments in North America in order to receive tax credits provided by Biden’s landmark climate change bill, the Inflation Reduction Act.
Carmakers are also seeking to diversify their supply of EV batteries, a market that’s dominated by China’s Contemporary Amperex Technology Co Ltd.
Hyundai is planning to invest US$5 billion in another battery plant with SK On Co in Georgia. Affiliate Hyundai Mobis Co will make battery packs to supply EVs built at Hyundai’s new plant in Georgia.
“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America,” said Youngsoo Kwon, chief executive officer of LG Energy Solution.
Hyundai and Kia delivered around 119,000 EVs during the first quarter of 2023, down 2.2% from a year ago, according to SNE Research, a Seoul-based research firm.
