Hyundai Motor Group and LG Energy Solution officially announced a plan to establish a 50/50 EV battery joint venture in the United States.
The two South Korean companies signed a memorandum of understanding with an intention to build a 30-gigawatt-hour (GWh) batter factory in Bryan County, Savannah, Georgia, investing over $4.3 billion (KRW 5.7 trillion).
Construction of the battery plant will start in the second half of this year, at a plot adjacent to the Hyundai Motor Group Metaplant America site (currently under construction), so the battery production will start before the end of 2025.
The annual capacity of 30 GWh is expected to be enough for about 300,000 electric vehicles, which would indicate some 100-kilowatt-hour (kWh) per battery pack on average.
Let's recall that just several weeks earlier, Hyundai Motor Group signed a similar agreement with SK Innovation's SK On, to build a 35-GWh battery joint venture in Bartow Centre, Georgia.
Those two battery factories will supply battery cells for the Hyundai Motor Group Metaplant America plant as well as the group's other manufacturing sites. Battery pack to be assembled by Hyundai Mobis.
Jaehoon Chang, President and CEO of Hyundai Motor Company said:
“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,”.
Youngsoo Kwon, CEO of LG Energy Solution said:
“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.”
The Hyundai Motor Group, which besides the Hyundai brand, consists of Kia and Genesis, is preparing for high-volume electric vehicle production in the US: 600,000 units annually just considering the recently announced battery plants.
LG Energy Solution noted that the new JV with Hyundai is actually its seventh battery plant project in the US (currently operating or being constructed). The total output of those plants is roughly 250-300 GWh annually.
Both companies were partnering on electrification for many years (2009 first non-rechargeable hybrid, and a few all-electric models - including Hyundai Kona Electric and Hyundai Ioniq 6). Another joint battery project is the upcoming plant in Indonesia (10 GWh annually).
Hyundai Motor Group and LG Energy Solution battery JV in brief:
- joint venture (50/50) between Hyundai Motor Group (HMG) and LG Energy Solution
- expected investment: over $4.3 billion (KRW 5.7 trillion)
- location: Bryan County, Savannah, Georgia
adjacent to Hyundai Motor Group Metaplant America (under construction)
- battery type: lithium-ion cells for electric vehicles
cell format: N/A
- manufacturing capacity (target): 30 GWh/year
(sufficient for roughly 300,000 all-electric vehicles)
- construction start (target): in the second half of 2023
- production start (target): at the end of 2025
- 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)