Hyundai Motor Group and lithium-ion batteries manufacturer LG Energy Solution (LGES) have announced a joint venture (JV) to manufacture electric vehicle (EV) battery cells at a new plant in Savannah, Georgia, US.
The two companies have signed a memorandum of understanding to help establish the JV.
The signing event took place at LGES headquarters in Seoul, South Korea, in the presence of Hyundai Motor CEO Jaehoon Chang and LGES CEO Youngsoo Kwon.
The development will help improve Hyundai Motor’s EV expansion efforts in North America.
The JV will be equally owned by Hyundai Motor Group and LGES, with an investment of over $4.3bn put into the venture.
The plant will have an annual production capacity of 30GWh, which in turn is said to be able to produce 300,000 EVs per year.
Construction of the facility is scheduled to commence in the second half of 2023.
Hyundai Mobis, another subsidiary of Hyundai Motor Group, will assemble battery packs using cells from the new plant and supply them to the group’s US manufacturing facilities to produce Hyundai, Kia, and Genesis EV models.
The JV will contribute to creating a stable battery supply in the region to meet the growing demand for EVs in the US market.
Chang 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.
Battery production itself is expected to begin in late 2025.