LG and Hyundai to Build $4.3 Billion Battery Cell Manufacturing Unit in the US
LG Energy Solution (LGES) and Hyundai Motor Group have announced a joint venture in the United States to manufacture electric vehicle (EV) battery cells.
The collaboration aims to accelerate the group’s electrification efforts in North America and lay the groundwork for the global EV transition.
The joint venture will be located in Bryan County, Savannah, Georgia, next to the Hyundai Motor Group Metaplant America, which is currently under construction.
LGES and Hyundai Motor Group will each own 50% of the venture after investing over KRW 5.7 trillion ($4.3 billion). The new battery cell manufacturing facility will have an annual capacity of 30 GWh, allowing for the production of approximately 300,000 EVs per year.
The facility’s construction is set to begin in the second half of 2023, with battery production beginning by the end of 2025.
Hyundai Mobis, a Hyundai Motor Group subsidiary, will assemble battery packs from the plant and supply them to the group’s U.S. manufacturing facilities to produce Hyundai, Kia, and Genesis EV models.
This strategic move aims to ensure a steady supply of batteries in the region while also meeting the growing demand for EVs in the US market.LGES already operates or is building seven battery plants in the United States.
LGES and Hyundai Motor Group have a long history of collaboration in the field of electrification, supplying EV batteries for various vehicle models. LGES recently announced plans to invest approximately KRW 7.2 trillion ($5.5 billion) in the construction of a battery manufacturing complex in Arizona.
LGES and Honda announced last August that they would form a joint venture to manufacture lithium-ion batteries in the United States to power Honda and Acura EV models for the North American market.
LGES and Honda announced a $4.4 billion investment in the plant. The plant’s annual production capacity is expected to be around 40 GWh. The pouch-type batteries manufactured at the plant will be exclusively supplied to Honda facilities in North America.
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