Hyundai Motor and LG Confirm $5.7 Billion US Joint Venture Plant... Producing 300,000 Battery Units Annually

Jang Jae-hoon, President and CEO of Hyundai Motor Company (left), is taking a commemorative photo at the signing ceremony for the North American battery joint venture held on the 26th at the LG Energy Solution headquarters located in Yeouido, Yeongdeungpo-gu, Seoul.
[Image source=Yonhap News]

Hyundai Motor Group and LG Energy Solution have decided to invest 5.7 trillion KRW to build a joint electric vehicle battery factory in the United States. This is their second collaboration following the battery joint factory built in Indonesia.

On the 26th, Hyundai Motor President Jang Jae-hoon and LG Energy Solution Vice Chairman Kwon Young-soo, along with other executives from both companies, signed a contract for the North American battery joint venture. According to the contract, Hyundai Motor Group will build a battery cell factory with an annual capacity of 30GWh near the dedicated electric vehicle plant currently under construction in Georgia, USA.

This capacity is sufficient to supply approximately 300,000 pure electric vehicles. The joint venture shares will be equally held by Hyundai Motor Group and LG Energy Solution. Hyundai Motor will invest 708 billion KRW, and the three Hyundai Motor Group companies along with LG Energy Solution will each contribute about 1.43 trillion KRW. The remaining amount will be financed through loans by the US joint venture company.

A bird's-eye view of Hyundai Motor Group's Meta Plant America, scheduled for mass production in 2025. It will operate as a dedicated factory producing electric vehicles for Hyundai Motor, Kia, and Genesis brands.

Previously, Hyundai Motor had confirmed a joint factory with domestic battery company SK On with an annual capacity of 35GWh. Now, the joint factory with LG has also been formalized. Hyundai Motor Group has been sourcing most of its batteries from LG and SK. Last year, construction began on Hyundai Motor Group’s dedicated electric vehicle plant in Georgia, called Hyundai Motor Group Meta Plant America (HMGMA).

The battery cells produced at the joint factory will be assembled into battery packs by Hyundai Mobis and supplied to HMGMA as well as the nearby Hyundai Motor Alabama plant and Kia Georgia plant. All electric vehicles produced by Hyundai Motor Group in the US will be supplied with these batteries. Due to the Inflation Reduction Act (IRA), local production of electric vehicles in the US has become increasingly important.

Hyundai Motor Group Chairman Chung Eui-sun (left in the photo), Brian Kemp, Governor of Georgia, USA, and Jose Munoz, Chief Operating Officer of Hyundai Motor Group, are making a commemorative toast at the groundbreaking ceremony of the Georgia plant last year.

Hyundai Motor Group has been receiving eco-friendly vehicle batteries from LG. Starting with the group's first eco-friendly vehicle, the Avante LPi Hybrid in 2009, followed by the Kona Electric and Ioniq 6, LG batteries have been used. This new US battery joint factory is the second after the 10GWh scale factory in Indonesia, which is under construction aiming for mass production starting in the first half of next year.

President Jang Jae-hoon said, "By establishing a joint factory with LG Energy Solution, a global battery leader and key partner, we will lay the foundation to gain an advantage in the global electric vehicle competition." Vice Chairman Kwon Young-soo stated, "By partnering with Hyundai Motor Group, a powerhouse in the global automotive industry, we will lead the North American electric vehicle market."