South Korea — In a significant move towards advancing electrification efforts, LG Energy Solution (LGES) and Hyundai Motor Group have announced a joint venture for electric vehicle (EV) battery cell manufacturing in the United States.
This collaboration seeks to bolster the Group’s commitment to electrification in North America and solidify its position in the global auto industry. The memorandum of understanding was signed between LGES and Hyundai Motor Group, with each party holding a 50 percent stake in the joint venture.
The project entails a substantial investment of over USD 4.3 billion (KRW 5.7 trillion).
The joint venture’s facility, with an annual production capacity of 30 GWh, is poised to support the manufacturing of 300,000 EVs every year.
Located in Bryan County, Savannah, Georgia, the site will be adjacent to Hyundai Motor Group Metaplant America, currently under construction. Construction of the battery production facility is scheduled to commence in the second half of 2023, with battery production expected to commence by the end of 2025 at the earliest.
The batteries produced by this joint venture will be utilized by Hyundai Mobis for assembling battery packs, which will then be supplied to the Group’s U.S. manufacturing facilities for the production of Hyundai, Kia, and Genesis EV models. This strategic move will ensure a stable supply of batteries in the region and enable the Group to promptly respond to the surging demand for EVs in the U.S. market.
This joint venture marks an important milestone for LG Energy Solution, as it now boasts seven operational or under-construction battery plants in the U.S., reflecting the company’s concentrated efforts to expand production capacity. By scaling up local production, LGES aims to deliver innovative products rapidly, thereby accelerating the clean energy transition in the United States.
It is worth noting that LGES and Hyundai Motor Group have a longstanding partnership in the field of electrification, having collaborated on the supply of EV batteries for various vehicle models, including the Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV.
The Hyundai Elantra Hybrid, the Group’s first electrified model introduced in 2009, marked the beginning of their journey.
Furthermore, both companies initiated the construction of an Indonesia battery cell joint venture in 2021, slated to commence production in the first half of 2024.
Looking ahead, LGES and Hyundai Motor Group are determined to strengthen their ties through continued collaboration on EV battery technology. By harnessing their collective expertise and resources, they are poised to contribute significantly to the advancement of electrification and sustainable mobility.