In a strategic move to accelerate electric vehicle (EV) battery production and job creation, Hyundai Motor Group and LG Energy Solution have announced plans to increase their joint investment in a battery manufacturing plant located in Georgia by an additional $2 billion. The collaboration between the two industry giants is poised to enhance the production capacity of electric vehicle batteries, contributing to the growth of the EV market.
The joint venture, a collaboration between Hyundai Motor Group and LG Energy Solution, will witness a substantial infusion of funds, raising the total investment for the Georgia battery manufacturing plant to $4.3 billion. This substantial capital injection is expected to bolster the plant's capabilities, enabling it to produce approximately 300,000 electric vehicle batteries on an annual basis.
As part of this ambitious endeavor, Hyundai Motor Group, the world's third-largest automaker in terms of vehicle sales, has outlined a comprehensive vision. The two corporate entities intend to allocate a cumulative investment of $7.59 billion over a span of eight years in Bryan County, Georgia. This comprehensive strategy encompasses not only the battery manufacturing plant but also a distinct electric vehicle manufacturing facility.
Scheduled for commencement of vehicle production in January 2025, the electric vehicle manufacturing plant is poised to contribute significantly to the automotive landscape. With a projected annual output of 300,000 vehicles, this facility is primed to meet the evolving demands of the market.
The combined manufacturing facilities, collectively referred to as the “Metaplant,” have been strategically incentivized by the 2022 U.S. Inflation Reduction Act. This legislation offers a consumer tax credit of $7,500, contingent on electric vehicles being produced within the United States. Moreover, the Act introduces stringent sourcing criteria for critical minerals and battery components, thereby emphasizing domestic production.
Of notable mention is the provision within the law for substantial U.S. battery production tax credits, further fostering the growth of battery manufacturing within the nation. Hyundai Mobis, a key player in the automotive parts sector, will be instrumental in assembling battery packs utilizing cells from the plant. These battery packs will subsequently be supplied to Hyundai Motor manufacturing facilities across the United States, supporting the production of electric vehicles under the Hyundai, Kia, and Genesis brands.
Georgia Governor Brian Kemp expressed his enthusiasm for the investment, highlighting the state's ability to attract a myriad of suppliers in support of this manufacturing initiative. Furthermore, Hyundai's Chief Operating Officer, Jose Munoz, previously indicated that the Georgia plant has the potential to eventually produce up to 500,000 vehicles annually, contingent on market demand.
In a parallel development, Hyundai Motor announced a distinct $5 billion electric vehicle battery joint venture in the United States in collaboration with SK On, the battery unit of SK Innovation Co.