Hyundai is considering the possibility of building two additional EV battery plants in the United States with LG Energy Solution and SK Innovation.
The current plan is likely to use LG’s factories located in Georgia, each with an annual capacity of around 35 GWh which is enough to power around 1 million electric vehicles.
While neither Hyundai nor LG Energy Solution have commented on the report, it is understood the two plants will be positioned close to the company’s $5.5 billion EV manufacturing facility in Bryan County, Georgia.
The two battery manufacturers will play a critical role in meeting President Biden’s new electric vehicle subsidy rules from President Biden’s Inflation Reduction Act.
The measure will require 40 percent of the monetary value of the battery minerals sourced from the United States or a US free trade partner starting next year for the vehicle to qualify for the US tax credit. This share will increase annually and reach 80 percent by 2027.
Hyundai itself targets a 7 percent share of the global electric vehicle market by the end of this decade. The South Korean automaker is rapidly expanding its manufacturing prowess across the United States.
In addition to planning two new battery plants with LG Energy Solution, LG also plans to invest approximately $1.88 billion to build a new “joint” battery factory in the United States with SK Innovation.
Production at the site could start in the first quarter of 2026 and aims to have an initial annual production capacity of around 20 GWh which is sufficient to power around 300,000 electric vehicles.
