Hyundai Motor Group and LG Energy Solution have announced plans to construct a $4.3 billion electric vehicle (EV) battery plant in the United States. This joint venture aims to capitalize on tax credits and adhere to new U.S. sourcing requirements for EV battery components and critical minerals. By meeting these criteria, buyers of Hyundai and Kia vehicles will qualify for up to $7,500 in tax credits under the Inflation Reduction Act.
Currently, vehicles from Hyundai Motor and its sister company, Kia Corp, are not eligible for these tax credits. To rectify this, Hyundai and LG Energy Solution will commence construction of the battery plant in the state of Georgia in the second half of 2023. Battery production is expected to commence by the end of 2025, with the plant boasting an annual production capacity of 30 gigawatt-hours (GWh), which is sufficient to power approximately 300,000 EVs.
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As the world’s third-largest automaker by vehicle sales, Hyundai Motor Group has been actively investing in EV and battery manufacturing facilities. The new plant in Georgia will be established in Bryan County, where Hyundai’s existing joint factory with LG Energy Solution is located. Both companies will own an equal 50% stake in this joint venture. LG Energy Solution is a key supplier to prominent automakers like Tesla and General Motors.
The collaboration between these two industry leaders signifies a significant step towards driving the EV transition in the United States. LG Energy Solution’s CEO, Youngsoo Kwon, expressed confidence in this partnership and emphasized their commitment to accelerating electrification efforts in America. In April, Hyundai Motor also finalized a separate $5 billion EV battery joint venture with SK On, the battery unit of SK Innovation Co Ltd, further reinforcing their commitment to advancing electrification in their largest market.
Source: Reuters
