US: Hyundai Motor Group And SK On Confirm 35 GWh Battery JV

The plant will further accelerate the Group’s electrification efforts.

2024 Kia EV9 in US specification exterior front three-quarter view 2024 Kia EV9 in US specification exterior front three-quarter view

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:

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