Hyundai, LG Energy plan $4.3B EV battery plant in Ga.

The plant, to be built adjacent to Hyundai's new EV factory under construction near Savannah, Ga., will have an annual capacity of 30 GWh, enough to power 300,000 electric vehicles.

May 26, 2023 06:53 AM

Bloomberg

HYUNDAI

Executives from Hyundai Motor Group and LG Energy announce their joint venture to build EV batteries in Georgia.

South Korea’s Hyundai Motor Group and LG Energy Solution Ltd. said they will invest 5.7 trillion won ($4.3 billion) to produce electric vehicle batteries in Georgia to comply with President Joe Biden’s clean energy tax law, which uses consumer tax incentives to stimulate domestic production and reduce reliance on Chinese suppliers.

The Hyundai group — which includes Hyundai Motor Co., Kia Corp. and Genesis — and LG Energy will split the investment 50-50, according to a statement Friday. The factory, next to Hyundai's EV plant under construction near Savannah, Ga., will have an annual capacity of 30 GWh, enough to power 300,000 electric vehicles, the carmaker said.

Construction will start in the second half of 2023 and production will begin as early as the end of 2025.

Battery plants in the works

Automakers and their battery partners are preparing to ramp up production over the next few years. Here are their plans.

(15 Results)

General Motors

1 more Ultium plant is planned for the U.S. Location and timing to be announced.

General Motors

The Ultium Cells joint venture between GM and LG Energy Solutions is expected to begin producing batteries next year in Spring Hill, Tenn.

General Motors

GM and LG will invest up to $2.5 billion to build a battery plant near Lansing, Mich., near 2 existing assembly plants, in late 2024.

Ford Motor Co.

Blue Oval City will make batteries, along with electric F-Series pickups, northeast of Memphis, Tenn.

Ford Motor Co.

Blue Oval SK Battery Park, a joint venture with SK Innovation, is expected to open in 2025. It will comprise 2 battery plants in central Kentucky for Ford and Lincoln nameplates. 1 will open in 2025 and the other in 2026.

SK Innovation

Battery production launched this year at Plant 1, which will supply the VW ID4 and Ford F150 Lightning. Plant 2 will build batteries for the F-150 Lightning. It’s expected to open in 2023.

Volkswagen

VW’s Chattanooga complex has been expanded to begin battery-pack assembly for the ID4; pilot builds are being done. The complex will eventually supply other VW models.

Toyota

Toyota Battery Manufacturing, North Carolina, is expected to open by 2025. It will be near the town of Liberty and is eventually expected to run 6 assembly lines, enough to power up to 1.2 million vehicles annually.

Stellantis

Stellantis and partner LG Energy Solution will build Canada’s first large-scale EV battery plant in Windsor, Ontario. The plant is expected to begin operations in 2024 and will have capacity to produce 45 gigawatt hours of lithium ion battery cells and modules.

Stellantis

Stellantis and Samsung SDI will jointly produce EV batteries in Kokomo, Ind. The plant is expected to open in 2025. It will have an initial capacity of 23 GWh, with an aim to increase to 33 GWh within a few years.

Panasonic

Panasonic broke ground in November on a $4 billion battery plant in De Soto, Kan., to supply Tesla and other customers.

Envision AESC

The Japanese supplier is investing $2 billion in Bowling Green, Ky., initially to supply Mercedes-Benz in Alabama but to include other automakersin the future.

Envision AESC

In December, the company announced an $810 million plant in Florence, S.C., to produce BMW’s newest generation of batteries.

Honda, LG Energy

Announced a joint venture in October to invest $3.5 billion on battery production near Columbus, Ohio.

Hyundai, LG Energy

The plant, to be built adjacent to Hyundai's new EV factory under construction near Savannah, Ga., will have an annual capacity of 30 GWh, enough to power 300,000 electric vehicles.

“We will create a strong foundation to lead the global EV transition through establishing a new EV battery cell plant with LG Energy Solution, a leading global battery producer and long-time partner,” Jaehoon Chang, CEO of Hyundai Motor Co. said in the statement.

Automakers and EV battery makers alike are increasingly rushing to make investments in North America in order to receive tax credits provided by Biden’s landmark climate change bill, the Inflation Reduction Act. Carmakers are also seeking to diversify their supply of EV batteries, a market that’s dominated by China’s Contemporary Amperex Technology Co. Ltd.

Hyundai is planning to invest $5 billion on another battery plant with SK On Co. in Georgia. Affiliate Hyundai Mobis Co. will make battery packs to supply EVs built at at Hyundai’s new plant in Georgia.

“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America,” said Youngsoo Kwon, CEO of LG Energy Solution.

Hyundai and Kia delivered around 119,000 EVs during the first quarter of 2023, down 2.2 percent from a year ago, according to SNE Research, a Seoul-based research firm.