- The new JV battery cell will be located in Bryan County, Savannah, Georgia where the Hyundai Motor Group Metaplant America is currently under construction.
- · Total investment of more than 4.3 billion dollars; HMG and LGES take 50 percent of the shares respectively
- · JV battery production aimed to start in late 2025 with an annual production capacity of 30 GWh, capable of supporting the production of 300,000 EVs.
- Building a second battery to make JV, Group and LGES the goal of continuing to strengthen their relationship and long-term cooperation in efforts to distribute electricity
SEOUL, May 26, 2023 – Hyundai Motor Group and LG Energy Solution (LGES) announced a joint venture to manufacture EV battery cells in the United States today.
Hyundai Motor Group and LGES signed a memorandum of understanding to produce EV batteries in the United States, further accelerating the Group’s North American electrification efforts. The signing ceremony was held at the LGES headquarters in Seoul on May 26 with the attendance of Jaehoon Chang, President and CEO of Hyundai Motor Company and Youngsoo Kwon, CEO of LG Energy Solution.
The Group and LGES will each hold a 50 percent stake in the JV, which will involve an investment of more than USD 4.3 billion (KRW 5.7 trillion).
“Hyundai Motor Group is focusing its electrification efforts to gain a leadership position in the global automotive industry. We will create a strong foundation to lead the global EV transition by establishing a new EV battery cell factory with LG Energy Solution, a leading company for the world’s battery manufacturer and long-term partner,” said Jaehoon Chang, President and CEO of Hyundai Motor Company.
“Two powerful leaders in the automotive and battery industries have joined forces, and together we are poised to drive the EV transition in America,” said Youngsoo Kwon, CEO of LG Energy Solution. “By further developing our product competitiveness and operational expertise around the world, LG Energy Solution will devote all our efforts to providing sustainable energy solutions to our customers.”
The annual production capacity of the new joint venture is 30 GWh, it can support the production of 300,000 units of EVs every year. The facility will be located in Bryan County, Savannah, Georgia, near the Hyundai Motor Group Metaplant America, which is under construction.
Starting construction in the second half of 2023, the joint venture plans to start battery production in late 2025 at the earliest.
Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to the Group’s US manufacturing plants for Hyundai, Kia and Genesis EV models. The new facility will help create a stable supply of batteries in the region and allow the Group to quickly respond to the growing EV demand in the US market.
With this JV, LGES now has seven battery plants currently operating or under construction in the United States, where the company is focusing most of its resources to expand production capacity. By increasing its domestic production, LGES aims to deliver innovative products at scale and speed, thereby accelerating the clean energy transition in the United States.
The Group and LGES have long been partners in the field of electrification having worked on the supply of EV batteries for vehicles, including the Elantra Hybrid, Kona Electric, and the dedicated IONIQ 6 EV. The Hyundai Elantra hybrid, LPi hybrid launched in 2009, was the Group’s first electrified model. In 2021, both started construction of the Indonesia battery cell JV which is set to start production in the first half of 2024.
The Group and LGES aim to further strengthen the ongoing relationship and EV battery collaboration.
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About LG Energy Solution
LG Energy Solution (KRX: 373220), a spin-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the world’s largest battery-related patent holder with more than 25,000 patents. Its strong global network, spanning North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis NV, Hyundai Motor Group, and Honda Motor Co., Ltd. At the forefront of green business and sustainability, LG Energy Solution aims to achieve zero-carbon operations by 2050, while incorporating the value of shared growth and fostering a diverse and inclusive corporate culture. To learn more about LG Energy Solution ideas and innovations, visit https://news.lgensol.com.
About Hyundai Motor Group
Hyundai Motor Group is a global business that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT and services. With approximately 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia, and Genesis. With innovative thinking, collaborative communication and a willingness to face any challenge, we strive to create a better future for all.
For more information about Hyundai Motor Group, please see: www.hyundaimotorgroup.com