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| Hyundai Motor President and CEO Chang Jae-hoon, left, shakes hands with LG Energy Solution CEO Kwon Young-soo at the headquarters of LG Energy Solution in Seoul, Friday. Courtesy of Hyundai Motor Group |
By Anna J. Park
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.
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