Hyundai Motor, LG Energy to build U.S. battery cell plant
Hyundai Motor Group and LG Energy Solution will build a 5.7 trillion won ($4.3 billion) new battery cell plant together in the United States and produce cells enough for 300,000 EVs each year from 2025.
Hyundai Motor Group and LG Energy Solution agreed to create a joint venture in the United States at LG Energy Solution headquarters in Yeouido, western Seoul, on Friday.
The two companies will contribute 50-50 of a total 5.7 trillion won. Groundbreaking in Savannah, Georgia is planned in the second half of this year. Also located there is Hyundai’s first EV-dedicated plant — Hyundai Motor Group Metaplant America (Hmgma). Battery cell production will begin as early as late 2025.
The new plant will have a 30 gigawatt-hour production capacity, enough to power 300,000 EVs each year.
Battery cells made from the plant will be packaged into battery packs by Hyundai Mobis and be supplied to EVs produced by Hmgma, Hyundai’s Alabama plant and Kia’s Georgia plant.
Hyundai Motor Group and LG Energy Solution have joined forces as key partners in their electrical automotive project, rolling out Hyundai Motor Group’s first liquefied petroleum gas hybrid compact sedan Avante LPi Hybrid, or Elantra, in 2009. The duo still maintains joint efforts to this day with electric cars including Kona Electric SUVs and Ioniq 6 EV sedans.
This is the second time for the companies to set up a joint battery cell venture. They are building a 10 gigawatt-hour plant in Karawang Regency, Indonesia, which is slated to begin mass production in the first half of next year.
The plant in Georgia will “secure a footing for Hyundai Motor Group to get the upper hand in the global EV race,” Hyundai Motor CEO Chang Jae-hoon said during Friday’s signing ceremony.
“Hyundai Motor Group and LG Energy Solution will join hands to lead the North American EV market,” said Kwon Young-soo, vice chairman and CEO of LG Energy Solution. They will provide world-class customer value by sharpening their distinct production capacity and product competitiveness, Kwon added.
BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]