Hyundai Motor-LG to Build Second Battery Plant at HMGMA

Expansion of Complete Vehicle Production by 200,000 Units
Munoz: "5,500 New Jobs"
Second Plant to Follow Completion of First Plant Next Year

Hyundai Motor Group and LG Energy Solution are planning a second battery joint venture factory. This is part of additional investments to establish an annual production system of 1.2 million complete vehicles in the United States by 2028.

According to industry sources on the 11th, Hyundai Motor and LG Energy Solution are discussing plans to establish a second battery factory in line with the plan to increase the production capacity of Hyundai Motor Group's Meta Plant America (HMGMA) plant by 200,000 units, centered on their joint venture 'HL-GA Battery Company.' The specific groundbreaking time and investment scale have not yet been finalized.

A Hyundai Motor official explained, "Currently, we are focusing on the construction of the first plant, and no detailed plans have been decided regarding the construction of an additional plant."

At the HMGMA completion ceremony last month, Hyundai Motor President Jose Munoz stated in an interview with local media, "Building a second battery factory on the HMGMA site and increasing hybrid vehicle production will create about 5,500 new jobs."

Hyundai Motor Group Chairman Chung Euisun announced a total investment plan of $21 billion (approximately 31 trillion KRW) in the United States over the next four years at the White House on the 24th of last month (local time) before the completion ceremony. According to this plan, $8.6 billion (approximately 12 trillion KRW) will be invested to establish an annual production system of 1.2 million vehicles, including the 200,000-unit expansion of HMGMA.

Hyundai Motor Vice Chairman Jang Jae-hoon also told reporters at the completion ceremony, "The scalability to expand by 200,000 units is already prepared," and added, "The $8.6 billion investment includes investment in the battery joint venture (JV)."

The two companies established a joint venture in 2023 and are investing a total of $4.7 billion to build the first plant on the HMGMA site. This plant is scheduled to be completed next year and will produce about 30GWh of batteries annually, enough to supply high-performance pure electric vehicles of approximately 300,000 units.

The second plant is expected to be smaller than the first plant based on the 200,000-unit expansion of HMGMA, and the groundbreaking may be delayed until after the completion of the first plant depending on the demand trend for electric vehicles in the United States.

HMGMA began producing the 'Ioniq 5' in October last year, and since last month, it has also been mass-producing the flagship SUV model 'Ioniq 9.' Currently, these vehicles are equipped with batteries produced at the Hyundai Motor-SK On joint venture plant located in Bartow County, Georgia.

Starting next year, once the LG Energy Solution joint venture's first plant begins mass production, future production volumes are expected to be supplied from there. Batteries produced at the SK On joint venture plant are expected to be shipped to Hyundai Motor's Alabama plant or Kia's West Point plant in Georgia. In particular, from mid-next year, batteries produced at the LG Energy Solution joint venture plant will be used in hybrid models that Kia will produce at HMGMA.