Contract Signed
Hyundai Motor Group has announced on May 26 that it has held a contract signing ceremony with LG Energy Solution to establish an electric vehicle (EV) battery cell joint venture factory in the U.S. by 2025.
The joint venture factory will be constructed in Bryan County, Georgia, where the Hyundai Motor Group Metaplant America (HMGMA), a dedicated electric vehicle factory, is located.
Both companies plan to establish the joint venture within this year and aim to begin production by the end of 2025 at the earliest. Construction on the factory will start in earnest in the second half of this year. The total estimated investment is 5.7 trillion won (US$4.3 billion), with each company holding a 50% stake. The joint venture factory is planned to be built to a scale capable of producing about 30 GWh per year, equivalent to battery cells for approximately 300,000 electric vehicles.
The battery cells produced at the joint venture factory will be manufactured into battery packs by Hyundai Mobis and supplied entirely to electric vehicles produced at the Hyundai Motor Group's American factories, including HMGMA, Hyundai’s Alabama factory, and Kia’s Georgia factory.
Chang Jae-hoon, president of Hyundai Motor Group, said, “Hyundai Motor Group is striving to solidify its global electric vehicle leadership and transition to an electrified system. Through the establishment of a joint venture factory with LG Energy Solution, a leading global battery company and key partner, we will set the groundwork to gain an advantage in the global electric vehicle competition.”
Kwon Young-soo, vice chairman of LG Energy Solution, said, “Hyundai Motor Group, a strong leader in the global automotive industry, and LG Energy Solution, a leading player in the battery industry, will join hands and lead the North American electric vehicle market. By further strengthening our global production capacity and unique product competitiveness we will provide the world’s best customer value.”