Hyundai Motor Group and LG Energy Solution have officially announced their plans to establish a 50/50 joint venture in the United States, dedicated to producing electric vehicle (EV) batteries. The South Korean companies have signed a memorandum of understanding, with the intention of constructing a 30-gigawatt-hour (GWh) battery factory in Bryan County, Savannah, Georgia, with an investment exceeding $4.3 billion (KRW 5.7 trillion).
Construction of the battery plant is scheduled to commence in the second half of this year, at a location adjacent to the Hyundai Motor Group Metaplant America site, which is currently under construction. This strategic positioning will allow battery production to commence before the end of 2025.
Once operational, the annual capacity of 30 GWh is projected to supply batteries for approximately 300,000 electric vehicles, indicating an average battery pack capacity of around 100 kilowatt-hours (kWh).
It is worth mentioning that Hyundai Motor Group had recently signed a similar agreement with SK Innovation’s SK On to establish a 35-GWh battery joint venture in Bartow Centre, Georgia. Both battery factories, including the newly announced Hyundai-LG joint venture, will serve as suppliers for Hyundai Motor Group’s Metaplant America plant, as well as the group’s other manufacturing facilities. The battery packs will be assembled by Hyundai Mobis.
Jaehoon Chang, President and CEO of Hyundai Motor Company, expressed the company’s dedication to electric vehicle technology, stating, “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.”
Similarly, Youngsoo Kwon, CEO of LG Energy Solution, emphasized the collaboration between the two industry leaders, declaring, “Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America. By further advancing our product competitiveness and global operational expertise, LG Energy Solution will commit our best efforts to offering the ultimate sustainable energy solutions to our customers.”
In addition to the Hyundai brand, the Hyundai Motor Group comprises Kia and Genesis, all of which are preparing for high-volume electric vehicle production in the United States. With the inclusion of the recently announced battery plants, the group anticipates a total annual production capacity of 600,000 units.
LG Energy Solution highlighted that the new joint venture with Hyundai marks its seventh battery plant project in the United States, including those currently operating or under construction. Collectively, these facilities are projected to yield an output of approximately 250-300 GWh annually.
The partnership between Hyundai Motor Group and LG Energy Solution spans several years, with collaborations dating back to 2009 when they jointly developed their first non-rechargeable hybrid. Subsequently, they have worked together on the production of several all-electric models, such as the Hyundai Kona Electric and Hyundai Ioniq 6. The two companies are also set to embark on another joint battery project with the establishment of a plant in Indonesia, projected to have an annual output of 10 GWh.
