Hyundai Motor Group (HMG) and LG Energy Solution (LGES) have announced the formation of a joint venture to manufacture batteries for electric vehicles in the United States. The MoU was signed on 26 May at the LGES Headquarters in Seoul.
Each group will own 50% of the joint venture, and its implementation will involve an investment of more than US$4.3 billion (KRW 5.7 trillion).
“Hyundai Motor Group is focusing its electrification efforts to secure a leading position in the global auto industry. We look forward to leading the global EV transition by establishing a new EV battery cell plant with LG Energy Solutions, a global battery leader. We will create a solid foundation for our manufacturer and long-time partner,” said Jehoon Chang, President and CEO, Hyundai Motor Company.
“Two great leaders in the automotive and battery industries have joined forces, and together we are poised to drive the EV transition in the United States,” said Youngsoo Kwon, CEO of LG Energy Solutions.
The new joint venture has an annual production capacity of 30 GWh, capable of supporting the production of 300,000 EV units annually. The facility will be next to a new plant in Savannah, Georgia, that Hyundai Motor Group is currently building.
The joint venture, which will start manufacturing in the second half of 2023, plans to start battery production by the end of 2025 at the earliest. Hyundai Mobis will assemble battery packs using the cells produced at this new plant and supply them to the factories. of the group to produce EV models from Hyundai, Kia and Genesis.
Hyundai and LG have long collaborated in the field of electrification, supplying batteries for vehicles such as the Elantra Hybrid, Kona Electric and IONIQ 6.