Hyundai Motor Group and LG Energy Solution will establish a joint electric vehicle battery cell plant in the U.S. by 2025, aiming to produce approximately 300,000 battery cells annually.
The signing ceremony for the North American battery joint venture contract took place on the 26th (Friday) at LG Energy Solution’s headquarters located in Yeouido, Seoul, attended by key figures including Hyundai Motor CEO Jang Jae-hoon and LG Energy Solution Chairman Kwon Young-soo.
During the signing event, Hyundai’s Jang Jae-hoon stated, “Hyundai Motor Group is focusing on consolidating its global electric vehicle leadership and transitioning to an electrified system. Through the establishment of the joint factory with global battery leader and key partner LG Energy Solution, we will set the groundwork to gain an advantage in the global electric vehicle race.”
LG Energy Solution’s Kwon Young-soo commented, “The strong Hyundai Motor Group in the global automotive industry and LG Energy Solution, a leader in the battery industry, will work together to lead the North American electric vehicle market. We will enhance our differentiated global production capacity and competitive product strength to deliver the highest customer value in the world.”
With this signing, Hyundai Motor Group and LG Energy Solution will build the battery cell joint plant in Bryan County, Savannah, Georgia, which is the site of the Hyundai electric vehicle dedicated factory.
The two parties plan to establish the joint venture within the year and aim to commence production by the end of 2025, with construction of the plant starting in earnest in the second half of this year. They will jointly invest a total of 5.7 trillion KRW (over $4.3 billion) and will each hold a 50% stake.
The joint plant will be built with a capacity to produce approximately 30 GWh of battery cells, enough for around 300,000 electric vehicles annually.
The battery cells produced at the joint plant will be converted into battery packs by Hyundai Mobis and supplied entirely to the electric vehicles produced at Hyundai Motor Group’s U.S. factories including HMGMA, Hyundai’s Alabama plant, and Kia’s Georgia plant.
Through the establishment of this joint venture with LG Energy Solution, Hyundai Motor Group aims to timely produce and sell highly competitive electric vehicles that ensure high efficiency, performance, and safety by locally sourcing battery cells optimized for vehicles produced in the U.S.
With its long-standing accumulation of production capacity for complete vehicles and various parts, Hyundai Motor Group plans to increase production efficiency and contribute to the production of electric vehicle battery cells with superior performance and safety through integrated quality management that connects the entire battery system and complete vehicles.
Hyundai Motor Group anticipates that through the battery cell joint plant with LG Energy Solution, which has proven global production and quality competitiveness, it will establish a system capable of actively responding to the explosive growth in demand for electric vehicles in the U.S.
Hyundai Motor Group and LG Energy Solution have collaborated as key partners in electrification projects since 2009, starting with the first eco-friendly car, the Avante LPi Hybrid, and have continued to supply batteries for major eco-friendly vehicles such as the Kona Electric and Ionic 6.
The establishment of the U.S. battery cell joint venture marks the second after the joint venture in Indonesia. Hyundai Motor Group and LG Energy Solution are currently building a joint battery cell plant with an annual capacity of 10 GWh in the Karawang industrial complex in Indonesia, which is expected to start full-scale production in the first half of next year.
In the future, Hyundai Motor Group and LG Energy Solution plan to expand strategic investments and strengthen their partnership to secure leadership in the global electric vehicle market.
By Sang-jin, daedusj@autodiary.kr