Hyundai Motor Group and LG Energy Solution (LGES) have announced an EV battery cell manufacturing joint venture in the US. The vehicle maker noted that the move will further accelerate the Group’s electrification efforts in North America.
A press release from Hyundai noted that the Group and LGES will each hold a 50% stake in the JV, which will involve an investment of over $4.3 billion (KRW 5.7 trillion).
The annual production capacity of the new joint venture is at 30 GWh, and will be able to support the production of 300,000 units of EVs annually. The facility will be in Bryan County, Savannah, Georgia, adjacent to the OEM's Metaplant America, currently under construction. Starting construction in the second half of 2023, the joint venture plans to commence battery production at the end of 2025.
The release added that Hyundai Mobis will assemble battery packs using cells from the plant and then supply them to the Group’s US manufacturing facilities to produce Hyundai, Kia and Genesis EV models.
Jaehoon Chang, President and CEO, Hyundai Motor Company, noted that the group is focusing on its electrification efforts to secure a leadership position in the global auto industry.
It will create a strong foundation to lead the global EV transition through the establishment of the new EV battery cell plant with LG Energy Solution, he added.
With this JV, LGES now has seven battery plants currently operating or being constructed in the US, where the company is concentrating most of its resources to expand its production capacity. By ramping up its local production, LGES aims to provide innovative products both in scale and speed, thereby expediting the clean energy transition in the US.
Youngsoo Kwon, CEO, LG Energy Solution, said, “By further advancing our product competitiveness and global operational expertise, LGES will commit our best efforts to offering the ultimate sustainable energy solutions to our customers.”
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