South Korean automobile firm Hyundai Motor Group and battery company LG Energy Solution (LGES) have announced an electric vehicle (EV) battery cell manufacturing joint venture in the United States on Friday.
Hyundai Motor said in a statement that the firm and LGES have signed a memorandum of understanding to produce EV batteries in the U.S. and further accelerate the Group’s electrification efforts in North America.
According to the statement, the group and LGES will each hold a 50 percent stake in the joint venture, which will involve an investment of over $4.3 billion.
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.
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 Motor’s car parts arm Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to the group’s U.S. manufacturing facilities for production of Hyundai, Kia and Genesis EV models.
The new facility will help create a stable supply of batteries in the region and allow the Group to respond fast to the soaring EV demand in the U.S. market.
With this JV, LGES now has seven battery plants currently operating or being constructed in the U.S., where the company is concentrating most of its resources to expand the production capacity.
By ramping up its local production, LGES aims to provide innovative products both in scale and with speed, thereby expediting the clean energy transition in the U.S.
“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 LGES, a leading global battery producer and long-time partner,” said Jaehoon Chang, President and Chief Executive Officer of Hyundai Motor.
Youngsoo Kwon, Chief Executive Officer of LGES, said that the two strong leaders in the auto and battery industries have joined hands, and together they are ready to drive the EV transition in America.
“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,” he said.
The group and LGES have long been partners in the field of electrification having worked on the supplies of EV batteries for vehicles, including Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV.
The Hyundai Elantra Hybrid, LPi hybrid vehicle introduced in 2009, was the group’s first electrified model.
In 2021, both started construction of the Indonesia battery cell joint venture which is set to start production in the first half of 2024.
Hyundai Motor and LGES aim to further strengthen the ties going forward with the EV battery cooperation.
LGES, a split-off from LG Chem, is a global manufacturer of lithium-ion batteries for electric vehicles, mobility, information technology (IT), and energy storage systems.
With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 25,000 patents.
Its robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group, and Honda Motor Co., Ltd.
Hyundai Motor is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service.
With about 250,000 employees worldwide, the group’s mobility brands include Hyundai, Kia, and Genesis.
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