2023.05.30
Hyundai Motor Group, LGES to inject $4.3 bil. to build EV plant in US.
By Anna J. Park, The
Korea Times - Hyundai Motor Group and LG Energy Solution (LGES) have agreed to
set up a battery cell manufacturing joint venture in the U.S., strengthening
the two companies' partnership in the area of manufacturing batteries for
electric vehicles (EVs).
Hyundai Motor CEO
Chang Jae-hoon and LGES CEO Kwon Young-soo signed a memorandum of understanding
at the headquarters of LGES in Yeouido, Seoul, Friday, agreeing to start
producing EV batteries in the U.S. by late 2025.
Under the agreement,
Hyundai Motor Group and LGES will jointly invest a total of 5.7 trillion won
($4.3 billion), each holding a 50 percent stake in the joint venture.
"Hyundai Motor
Group is focusing on its electrification efforts to secure a leadership
position in the global automotive industry. We will create a strong foundation
to lead the global EV transition through establishing a new EV battery cell
plant with LGES, a leading global battery producer and long-time partner,"
Chang Jae-hoon, president and CEO of Hyundai Motor Company, said during the
signing ceremony.
"Two strong
leaders in the automotive and battery industries have joined hands, and
together we are ready to drive the EV transition in America," LGES CEO
Kwon Young-soo said at the ceremony. "By further advancing our product
competitiveness and global operational expertise, LGES will commit our best
efforts to offering the ultimate sustainable energy solutions to our
customers."
The facility will be
set up in Bryan County of Savannah, Georgia, which is adjacent to Hyundai Motor
Group Metaplant America (HMGMA). Construction is slated to begin in the second
half of this year. Battery production is to commence by the end of 2025 at the
earliest.
The manufacturing
plant's annual production capacity will be 30 gigawatt-hours (GWh), which can
equip over 300,000 electric vehicles (EV) annually. Hyundai Mobis will assemble
battery packs using cells from the plant, then supply them to its nearby
manufacturing facility for production of EV models of Hyundai, Kia and Genesis.
This is the second
joint venture between Hyundai Motor Group and LGES to construct an EV battery
cell plant. The two previously set up a battery cell manufacturing entity in
Indonesia in 2021.
Source: https://koreatimes.co.kr/www/tech/2023/05/419_351779.html