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SEOUL, 26 May 2023: Hyundai Motor Group and LG Energy Solution have announced the establishment of a joint venture for EV battery cell manufacturing in the United States.
MoU signed
The memorandum of understanding was signed between the two companies, marking a collaboration to produce electric vehicle batteries in the U.S. This joint venture aims to accelerate Hyundai Motor Group’s electrification efforts in North America.
The joint venture will be a 50-50 partnership between Hyundai Motor Group and LG Energy Solution, with a total investment of over USD 4.3bn (KRW 5.7 trillion).
Hyundai Motor Company’s CEO, Jaehoon Chang, emphasized the company’s focus on electrification to establish a leadership position in the global auto industry. The partnership with LG Energy Solution, a leading global battery producer and long-time partner, will enable Hyundai to create a strong foundation and drive the global EV transition.
Youngsoo Kwon, CEO of LG Energy Solution, expressed enthusiasm for the collaboration, stating that two leaders in the auto and battery industries are joining forces to drive the EV transition in America. LG Energy Solution aims to leverage its product competitiveness and operational expertise to offer sustainable energy solutions to customers.
Annual production of 30GWh
The new joint venture will have an annual production capacity of 30 GWh, which can support the production of 300,000 EVs per year. The facility will be located in Bryan County, Savannah, Georgia, adjacent to Hyundai Motor Group’s Metaplant America, currently under construction. Construction of the battery cell plant is scheduled to begin in the second half of 2023, with battery production expected to start by the end of 2025 at the earliest.
Hyundai Mobis, an affiliate of Hyundai Motor Group, will assemble battery packs using cells from the new plant. These battery packs will be supplied to Hyundai, Kia, and Genesis manufacturing facilities in the U.S. to support the production of EV models across the Group’s brands. The joint venture will help establish a stable battery supply chain in the region and enable Hyundai Motor Group to respond quickly to the increasing demand for EVs in the U.S. market.
This joint venture expands LG Energy Solution’s presence in the U.S., with a total of seven battery plants currently operating or under construction. By ramping up local production capacity, LG Energy Solution aims to provide innovative and scalable products, contributing to the acceleration of the clean energy transition in the U.S.
Hyundai Motor Group and LG Energy Solution have a longstanding partnership in the field of electrification, collaborating on the supply of EV batteries for various Hyundai models, including the Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV. The joint venture in the U.S. further strengthens their ties and cooperation in the EV battery sector.
