Hyundai Motor Group and SK On officially announced the approval of the EV battery cell joint venture factory, which will be built in the United States.
The two South Korean partners first signed a memorandum of understanding (MOU) in November 2022 and in December the location in Bartow County, Georgia was confirmed.
According to the latest statement, Hyundai Motor Group's affiliates - Hyundai Motor, Kia and Hyundai Mobis - approved the $5 billion deal with SK On (50/50) to build a 35-gigawatt-hour (GWh) battery cell factory, which is expected to start production in the second half of 2025.
Lithium-ion battery cells produced at the site will be used by Hyundai Mobis to assemble EV battery packs. The group's subsidiary is already preparing an EV power electric system plant in Bryan County, Georgia, where Hyundai Motor is building its all-new EV-dedicated factory - the Metaplant America (HMGMA).
Battery cells from the joint venture will also be used by the group's existing plants - Hyundai Motor Manufacturing Alabama (HMMA) factory in Montgomery, Alabama, and Kia Georgia Plant (KaGA).
Hyundai Motor Group says that 35 GWh of batteries should be sufficient to produce around 300,000 all-electric vehicles. This would be equivalent to nearly 117 kilowatt-hours (kWh) per vehicle on average.
Securing a stable supply of batteries for the US market is one thing. Another thing is that local production of electric vehicles and batteries is crucial to regain access to the $7,500 federal tax credit after the Inflation Reduction Act of 2022 (IRA) came into power. Currently, Hyundai Motor Group's BEVs lack eligibility for this important incentive.
It's noteworthy that SK On has been a strategic partner for the Group and from the beginning is engaged in EV models, based on the E-GMP platform, including Hyundai Ioniq 5, Kia EV6, and Genesis GV60.
SK Innovation EV battery cell
Hyundai Motor Group and SK On battery JV in brief:
- joint venture between Hyundai Motor Group (HMG) and SK On
- expected investment: $5 billion
- location: Bartow Centre, Georgia
a zoned manufacturing and industrial site located on Highway 411
- battery type: lithium-ion cells for electric vehicles
- manufacturing capacity (target): 35 GWh/year
(sufficient for roughly 300,000 all-electric vehicles)
- production start (target): 2025 H2
- battery packs to be produced by Hyundai Mobis
- expected to supply HGM plants:
Metaplant America (HMGMA), Bryan County, Georgia
Hyundai Motor Manufacturing Alabama (HMMA) factory in Montgomery, Alabama
Kia Georgia Plant (KaGA)