Hyundai Motor Group and LG Energy Solution have announced a joint venture to manufacture electric vehicle battery cells in the United States. The facility will be located in Bryan County, Savannah, Georgia, near Hyundai Motor Group's Metaplant America, which is currently under construction.
The two companies signed a memorandum of understanding (MoU) to establish the joint venture, with both companies holding a 50 per cent stake each. The project involves an investment of over $4.3 billion and aims to accelerate Hyundai Motor Group's electrification efforts in North America.
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Construction of the joint venture facility is scheduled to commence in the second half of 2023, and battery production is expected to start by the end of 2025 at the earliest. Hyundai Mobis, an affiliate of Hyundai Motor Group, will assemble battery packs using cells from the plant and supply them to the group's manufacturing facilities in the United States for the production of Hyundai, Kia, and Genesis EV models.
This joint venture will have an annual production capacity of 30 GWh, which will support the manufacturing of approximately 300,000 EVs per year.
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This partnership marks LG Energy Solutions' seventh battery plant in the United States, as the company focuses its resources on expanding production capacity in the country.
Hyundai Motor Group and LG Energy Solution have a longstanding partnership in the field of electrification, collaborating on the supply of EV batteries for various vehicle models.
“Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry. 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.
Youngsoo Kwon, CEO of LG Energy Solution said, “Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America. By further advancing our product competitiveness and global operational expertise, LG Energy Solution will commit our best efforts to offering the ultimate sustainable energy solutions to our customers.”
