Hyundai Motor Group, LG Energy to construct $4.3 billion EV battery plant in U.S.

May 26, 2023 | blog

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A unique Hyundai electrical automobile and battery manufacturing facility underneath building in Georgia, U.S., on April 17, 2023.
Elijah Nouvelage | Bloomberg | Getty Images

South Korea’s Hyundai Motor Group and LG Energy Solution on Friday mentioned they are going to construct a $4.3 billion electrical automobile battery plant within the United States amid a push to reap the benefits of tax credit.

Manufacturers should adhere to new U.S. sourcing necessities for EV battery elements and important minerals in order that patrons of their autos can qualify for as much as $7,500 in tax credit underneath the Inflation Reduction Act.

Vehicles from Hyundai Motor and sister automaker Kia are at present not eligible.

Hyundai and LGES mentioned building of the manufacturing facility within the state of Georgia will start within the second half of 2023, with battery manufacturing beginning on the finish of 2025 on the earliest.

It can have an annual manufacturing capability of 30 gigawatt-hours, sufficient for 300,000 EVs, they mentioned.

Hyundai Motor Group, the world’s third-largest automaker by automobile gross sales, is constructing EV and battery manufacturing services in Bryan County within the state, the place its joint manufacturing facility with LGES can be based mostly.

LGES and Hyundai Motor Group, which homes Hyundai Motor, Kia and auto elements maker Hyundai Mobis, will every personal 50% of the three way partnership.

LGES provides automakers together with Tesla and General Motors.

“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America,” LGES CEO Youngsoo Kwon mentioned in an announcement.

In April, Hyundai Motor finalized a $5 billion EV battery three way partnership within the United States with SK On, a battery unit of SK Innovation, boosting electrification efforts in its largest market.

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