Hyundai and LG plan new EV battery plant

Hyundai Motor Group and LG Energy Solution (LGES) intend establishing a $7.084 billion (US$4.3b) battery cell manufacturing joint venture in Georgia, US, where Hyundai’s “Metaplant America” is being built.

Battery production is expected to start at the end of 2025 with 30GWh annual production capacity, capable of supporting the production of 300,000 EVs.

Building the second battery manufacturing joint venture, Hyundai and LGES aim to continue strengthening ties with their long-time partnership in electrification efforts, says Hyundai.

Hyundai Motor Company president and chief executive Jaehoon Chang and LGES chief executive Youngsoo Kwon signed a memorandum of understanding in Seoul on May 26 to produce EV batteries in the US and further accelerate Hyundai’s electrification efforts in North America.

“Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry,” says Chang.

“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.’

Kwon says LGES will commit its best efforts to offering the ultimate sustainable energy solutions to customers.

Building the new battery plant is due to start in the second half of this year.

Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to the group’s US manufacturing facilities for production of Hyundai, Kia and Genesis EV models, allowing the group to respond quickly to soaring US EV demand.

With this joint venture, LGES now has seven battery plants operating or being constructed in the US where the company is concentrating most of its resources to expand production capacity.

Hyundai and LGES have long been partners in electrification, having worked on EV battery supplies for vehicles, including the Elantra Hybrid, Kona Electric, and Ioniq 6.

The Hyundai Elantra Hybrid, LPi hybrid vehicle introduced in 2009, was the group’s first electrified model.

In 2021, both started construction of the Indonesia battery cell joint venture set to begin production in the first half of 2024.