Hyundai, LG Energy announce $4.3 billion battery cell plant in the US

Hyundai Motor Group and LG Energy Solution (LGES) will together build an EV battery cell manufacturing facility in the US at an investment of over $4.3 billion, the companies announced on Friday. Both partners will hold equal stake in the joint venture.

In a statement, Hyundai said that the factory will have annual production capacity of 30 GWh, which will allow it to support production of 300,000 EVs per annum. The plant will come up in Savannah, Georgia, adjacent to another Hyundai facility currently under construction.

The cells manufactured by the plant will be supplied to Hyundai Mobis, which will use them to assemble battery packs, then supply the batteries to Hyundai's US manufacturing facilities for production of Hyundai, Kia and Genesis EV models.

Hyundai and LGES will begin construction of the new facility in the second half of this year, and say battery production will start by end of 2025 or later.

Hyundai is accelerating its efforts in the EV domain, and aims to sell 3.23 million EVs a year by 2030.

The company said the new facility will LGES help create a stable supply of batteries for the US market, allowing it to respond fast to the soaring US demand for EVs. Hyundai has also locked-in battery supplies from SK On Co from 2025 onwards.

Jaehoon Chang, President and CEO of Hyundai Motor, said after the deal was signed: "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 LG Energy Solution, a leading global battery producer and long-time partner."