LG Energy Solution and Hyundai Motor Group plan to invest $4.3 billion or 5.7 trillion won to build a plant to manufacture electric-car batteries in the US and benefit from American subsidies under President Joe Biden’s clean energy tax law.
Both South Korean businesses will split the investment 50-50. The plant, to be set up in Bryan County, Georgia, will have a production capacity of 30 gigawatt-hours, enough to supply batteries for 300,000 vehicles per year. Production might start as early as the end of 2025, with construction beginning in the second part of 2023.
The Hyundai group, which is made up of Hyundai Motor Co, Kia Corp, and Genesis, is also preparing to invest $5 billion in a new battery plant with SK On Co, as it announced a month ago.
The joint venture between LG Energy Solution and Hyundai is one of seven battery factories that are now operational or under construction in the United States. To begin production in the early half of 2024, both firms began building their Indonesia battery cell JV in 2021.
LG Energy Solution will produce battery cells, while Hyundai Mobis, an auto parts affiliate of Hyundai Motor Group, 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. The new facility will help create a stable supply of batteries in the region and allow the group to respond fast to soaring EV demand in the US market.