Hyundai Motor Group and LG Energy Solution (LGES) announced the formation of a new joint venture, with plans to build a U.S. EV battery plant in Bryan County, Georgia, capable of supporting the production of 300,000 vehicles per year, and an anticipated investment of more than $4.3 billion.
The new plant will be adjacent to Hyundai’s Metaplant America, its first full-electric vehicle (EV) facility in the U.S., announced last year, and currently under construction.
In a statement announcing the JV, Hyundai said that the new facility will help the company “to respond fast to the soaring EV demand in the U.S. market,” and to create a stable supply of batteries in the region. Battery packs assembled using cells from the plant will be supplied for production of Hyundai, Kia and Genesis EV models.
Earlier this year, Hyundai announced a goal to become one of the world’s top 3 EV manufacturers by 2030.
Jaehoon Chang, President and CEO of Hyundai Motor Company, said:
“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.”
The launch marks the latest in a series of major investment announcements in the U.S. aimed at dramatically ramping EV and battery capacity in the country and follows an executive order by President Joe Biden in 2021 mandating that zero-emissions vehicles make up half of new vehicle sales in the U.S. by 2030, as well as the allocation of $7 billion from the U.S. Bipartisan Infrastructure Law aimed at strengthening the U.S.’ domestic battery supply chain. Automotive leaders GM, Ford, BMW, Toyota, Honda and Stellantis have each announced significant investment plans in EV and battery capacity over the past several months.
LGES, which was spun out of chemical giant LG Chem in 2020, said that it is now concentrating most of its resources in the U.S. to expand battery production capacity. The new JV brings the company’s number of battery plants currently operating or being constructed in the U.S. to seven, including a $4.4 billion JV launched earlier this year with Honda.
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.”
Construction on the new JV’s battery plant is expected to begin later this year, with battery production anticipated to begin as soon as late 2025.