Hyundai Motor Group and SK On are set to establish a joint electric vehicle battery cell factory in the US by 2025, securing a supply of battery cells sufficient for approximately 300,000 vehicles annually.
On the 25th (Tuesday), Hyundai Motor, Kia, and Hyundai Mobis held a regular board meeting where they approved the establishment of the North American battery cell joint venture with SK On.
Prior to this approval, Hyundai Motor Group and SK On signed a business agreement last November to collaborate on battery supply in North America.
The joint venture aims to construct a factory in Bartow County, Georgia, operational in the second half of 2025, with an annual production capacity of 35 gigawatt-hours (GWh), enough to produce battery cells for about 300,000 electric vehicles.
Both parties will jointly invest a total of $5 billion (approximately 6.5 trillion KRW) and hold equal shares of 50% each.
The battery cells produced in the joint venture will be supplied entirely to Hyundai Mobis, which will manufacture them into battery packs for electric vehicles produced by Hyundai, Kia, and Genesis in the US.
The joint factory is located near Kia’s Georgia plant (189km), Hyundai’s Alabama plant (304km), and the new dedicated electric vehicle plant that Hyundai Group plans to complete by 2025 (460km), providing advantages in supply chain management.
Through this joint venture with SK On, Hyundai Motor Group aims to locally procure battery cells optimized for vehicles produced in the US, ensuring timely production and sales of high-efficiency, high-performance, and safe electric vehicles with enhanced competitiveness.
A spokesperson from Hyundai Motor Group stated, “Hyundai Motor Group and SK On have been collaborating on the supply of batteries for key electric vehicles like the Ioniq 5, EV6, and GV60. This joint factory will strengthen our strategic partnership and stabilize local procurement of battery cells, which will help increase electric vehicle sales in the US. “
Lee Sang-jin daedusj@autodiary.kr