Hyundai, LG Energy to build $4.3 billion EV battery plant in U.S.
Hyundai Motor Group and LG Energy Solution announced Friday that they will invest $4.3 billion to build an electric vehicle (EV) battery plant in the US. The move comes as manufacturers compete to take advantage of tax credits for adhering to new US sourcing requirements for EV battery components and critical minerals. The credits, under the Inflation Reduction Act, could be worth up to $7,500 per vehicle.
Construction of the new facility will begin in the second half of 2023, with battery production starting at the end of 2025 at the earliest. The plant, located in the state of Georgia, will have an annual production capacity of 30 gigawatt-hours, enough for 300,000 EVs.
Hyundai Motor Group, which includes automakers Hyundai and Kia, and auto parts maker Hyundai Mobis, is the world’s third-largest automaker by vehicle sales, and is building EV and battery manufacturing facilities in Bryan County. LG Energy Solution supplies automakers including Tesla and General Motors, among others.
The two companies will establish a joint venture for the Georgia plant, with each holding a 50% stake.
According to LG Energy Solution CEO Youngsoo Kwon, “Two strong leaders in the auto and battery industries have joined hands, and together, we are ready to drive the EV transition in America.”
FAQs:
What is the new US sourcing requirement for EV battery components and critical minerals?
To qualify for up to $7,500 in tax credits under the Inflation Reduction Act, manufacturers must adhere to new US sourcing requirements for EV battery components and critical minerals.
When will construction of the new facility begin?
Construction of the new facility will begin in the second half of 2023.
When will battery production start at the Georgia plant?
Battery production is expected to start at the end of 2025 at the earliest.
What will be the annual production capacity of the Georgia plant?
The plant will have an annual production capacity of 30 gigawatt-hours, enough for 300,000 EVs.
Which automakers does LG Energy Solution supply?
LG Energy Solution supplies automakers including Tesla and General Motors, among others.
Hyundai and LG Energy Join Forces to Construct $4.3 Billion Electric Vehicle Battery Factory in the United States.
Hyundai Motor Group and LG Energy Solution have announced plans to construct a $4.3 billion electric vehicle (EV) battery plant in the US to capitalise on tax credits. The move is part of an effort by manufacturers to comply with the new US sourcing requirements for EV battery components and critical minerals, allowing buyers of their EVs to qualify for up to $7,500 in tax credits under the Inflation Reduction Act. The factory, which will have an annual production capacity of 30 gigawatt-hours, will be built in Georgia and is set to begin construction in H2 2023, with EV battery production starting at the end of 2025 at the earliest. The facility will be owned equally by LG Energy Solution and Hyundai Motor Group.