4 Korean Business Groups to Invest 44 Tril. Won in the U.S.

South Korean President Moon Jae-in (second from right) at the KORUS Business Roundtable on May 21

South Korea and the United States are expected to expand their cooperation in the advanced manufacturing sector after the first summit between Presidents Joe Biden and Moon Jae-in. Samsung, Hyundai Motor, LG and SK Groups are planning to invest 44 trillion won in the United States.

Specifically, Samsung Electronics will invest US$17 billion to build a new foundry in the United States and Hyundai Motor Group will invest US$7.4 billion for local electric vehicle production. The new investment from LG Energy Solution and SK Innovation is estimated at US$14 billion.

The new foundry of Samsung Electronics is likely to be used for 5-nm EUV lithography. The company is currently running 14-nm system-on-chip production facilities in Austin, Texas. The new foundry is scheduled to become the first overseas EUV lithography facility of Samsung Electronics.

Hyundai Motor Group’s investment is to accelerate its R&D of electric vehicles, robotics, autonomous driving and hydrogen vehicles. The group is expected to expand its facilities in Alabama for the Ioniq 5, the Ioniq 6, the Genesis JW, etc.

LG Energy Solution and GM will build an electric vehicle battery plant in Tennessee. They will invest a total of 2.7 trillion won in the plant via their joint venture Ultium Cells so that its annual manufacturing capacity can reach at least 35 GWh by the first half of 2024. In addition, LG Energy Solution is considering building two more plants on its own by investing at least five trillion won by 2025.

SK Innovation will set up a joint venture with Ford for the purpose of EV battery cell production. SK Innovation is planning to invest three trillion won in the joint venture and another three trillion won in its two plants currently under construction in Georgia. It is considering investing yet another three trillion won to build two more plants.

U.S. President Joe Biden mentioned the names of the groups and expressed his gratitude at the White House press conference that followed the summit. South Korean President Moon Jae-in asked the U.S. government to make efforts for a stable supply of materials, water, electric power, and so on. U.S. Secretary of Commerce Gina Raimondo said that they do not have to worry about it.

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