Hyundai and LG Energy Solution to establish battery cell manufacturing joint venture in the U.S.

Hyundai and LG Energy Solution (LGES) have announced an EV battery cell manufacturing joint venture in the U.S.

Hyundai and LG Energy Solution to establish battery cell manufacturing joint venture in the U.S.

Hyundai and LGES signed a memorandum of understanding to produce EV batteries in the U.S. and further accelerate Hyundai’s electrification efforts in North America. The signing ceremony took place in LGES’s headquarters in Seoul with the attendance of Jaehoon Chang, President and CEO of Hyundai and Youngsoo Kwon, CEO of LG Energy Solution.

Hyundai and LGES will each hold a 50 percent stake in the joint venture, which will involve an investment of over USD 4.3 billion.

The annual production capacity of the new joint venture is at 30 GWh, able to support the production of 300,000 units of EVs annually. The facility will be in Bryan County, Savannah, Georgia, adjacent to Hyundai Motor Group Metaplant America, currently under construction.

Starting construction in the second half of 2023, the joint venture plans to start battery production at the end of 2025 at the earliest.

Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to Hyundai’s U.S. manufacturing facilities for production of Hyundai, Kia and Genesis EV models. The new facility will help create a stable supply of batteries in the region and allow the company to respond fast to the soaring EV demand in the U.S. market.

With this joint venture, LGES now has seven battery plants currently operating or being constructed in the U.S., where the company is concentrating most of its resources to expand the production capacity. By ramping up its local production, LGES aims to provide innovative products both in scale and with speed, thereby expediting the clean energy transition in the U.S.

Hyundai and LGES have long been partners in the field of electrification having worked on the supplies of EV batteries for vehicles, including the Elantra Hybrid, Kona Electric, and Ioniq 6 dedicated EV. The Elantra Hybrid, LPi hybrid vehicle introduced in 2009, was the company’s first electrified model. In 2021, both started construction of the Indonesia battery cell joint venture which is set to start production in the first half of 2024.

Hyundai and LGES aim to further strengthen the ties going forward with the EV battery cooperation.

Share This Article
Reports