Hyundai and LG Energy to set up US battery cell manufacturing JV
Hyundai Motor Group and LG Energy Solution (LGES) plan to establish an EV battery cell manufacturing joint venture in the US.
The company signed a memorandum of understanding to produce EV batteries in the US and further accelerate Hyundai's electrification efforts in North America. Hyundai and LGES will each hold a 50% stake in the JV, which will involve an investment of over USD 4.3 billion.
“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,” says Jaehoon Chang, President and CEO of Hyundai Motor Company, in a press release.
The annual production capacity of the new joint venture is at 30 GWh, able to support the production of 300,000 units of EVs annually. The facility will be in Bryan County, Savannah, Georgia, adjacent to Hyundai Motor Group Metaplant America, currently under construction.
“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America,” adds Youngsoo Kwon, CEO of LG Energy Solution. “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.”
Starting construction in the second half of 2023, the joint venture plans to start battery production at the end of 2025 at the earliest.
Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to Hyundai's US manufacturing facilities for the production of the company's Kia and Genesis EV models.
With this JV, LGES will have seven battery plants operating or being constructed in the US.
