South Korean companies Hyundai and LG Energy will establish a massive new battery cell manufacturing joint venture in the United States, targeting annual production capacity of 30GWh.
The two companies say they new $US4.3 billion production facility will be built in Bryan County, Savannah, Georgia, where Hyundai Motor Group Metaplant America is already under construction. It should begin production by the end of 2025 and support more than 300,000 new electric vehicles a year.
Battery packs using cells from the plant will be assembled by Hyundai Mobis, the “parts and service” arm for the South Korean automakers Hyundai, Genesis and Kia. The battery packs will then be supplied to Hyundai Group’s US manufacturing facilities for production of Hyundai, Kia, and Genesis EV models.
“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,” said Jaehoon Chang, president and CEO of Hyundai Motor Company.
The latest deal means LG Energy now has seven battery plants currently operating or under construction in the United States, and is is yet another example of the investment boom driven by the Inflation Reduction Act, which provides tax credits to companies that invest in local renewable and automotive manufacturing facilities.
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