autoevolution
 

Hyundai and LG To Invest Over $4.3B To Start EV Battery Production in the US

Hyundai Motor Group and LG Energy Solution (LGES) announced they're establishing a battery cell manufacturing joint venture in the United States to support increasing EV demands.
2024 Hyundai Kona 56 photos
Photo: Hyundai
Hyundai and LG To Invest Over $4.3B To Start EV Batteries Production in the USHyundai and LG To Invest Over $4.3B To Start EV Batteries Production in the USHyundai and LG To Invest Over $4.3B To Start EV Batteries Production in the US2023 Genesis Electrified GV702023 Genesis Electrified GV702023 Genesis Electrified GV702023 Genesis Electrified GV702023 Genesis Electrified GV702023 Genesis Electrified GV702024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2024 Hyundai Kona2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe2023 Hyundai i20 refresh for Europe
Hyundai has significant electrification goals planned, all possible via massive financial investments. Last month, the Asian automaker announced it would invest a staggering 24 trillion KRW (about $18B) by the end of the decade to grow EV production and export and support domestic EV-related industries.

By 2030, Hyundai targets an annual EV production of 1.21 million units in Korea and a global volume of 3.54 million units. Together with its partner brands Kia and Genesis, Hyundai wants to be part of the top three EV manufacturers in terms of EV sales, also by 2030.

To support these ambitious growth plans, Hyundai will introduce 17 BEV (Battery Electric Vehicles) models by 2030, 11 of which will be under the Hyundai brand and six under its Genesis umbrella. The new Hyundai models will include three sedans, six SUVs, one light commercial vehicle, and one new type model.

Hyundai Motor Group and LGES have signed a memorandum of understanding to manufacture EV batteries in the US, thus accelerating the company's electrification efforts in North America. Both parties will each hold a 50% stake in the joint venture – this initiative involves an investment of more than KRW 5.7 trillion ($4.3 billion).

The two companies' joint venture aim for an annual production capacity of 30 GWh, which will be able to support the production of 300,000 EVs annually. The facility will be located next to the Hyundai Motor Group Metaplant Aerica, currently under construction, in Bryan County, Savannah, Georgia.

The new facility will be built starting in the second half of 2023, with operations to go live at the end of 2025 at the earliest. Hyundai Mobis will assemble battery packs using the cells made at the plant – they will be used in Hyundai's US manufacturing facilities to produce Hyundai, Kia, and Genesis EV models. With the popularity of EVs on the rise in the US market, the Group will have a stable supply to adapt to the demand.

LGES is also focusing on expanding its production capacity in the US, as it now has seven battery plants currently operating or being constructed. For instance, the company announced in January this year that it teamed up with Honda to open a battery production plant in Ohio.

This new partnership between Hyundai and LGES will further strengthen their ties, which go way back, as they have worked together to supply batteries for EVs such as the Elantra Hybrid, Kona Electric, and the Ioniq 6. The two also started a joint venture in Indonesia to produce batteries – that facility is set to go live in the first half of 2024.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
press release
About the author: Mircea Mazuru
Mircea Mazuru profile photo

Starting out with a motorcycle permit just because he could get one two years earlier than a driver's license, Mircea keeps his passion for bikes (motor or no motor) alive to this day. His lifelong dream is to build his own custom camper van.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories