Why it matters: Hyundai Motor Group and LG Energy Solution (LGES) are investing $4.3 billion in a joint venture to produce electric vehicle (EV) batteries in the U.S.
This significant investment comes in response to the growing demand for EVs in North America and indicates a strategic direction for both companies.
- Hyundai and LGES will each hold a 50 percent stake in the joint venture, with the battery manufacturing facility in Bryan County, Savannah, Georgia.
- The new plant, expected to begin battery production by the end of 2025, will have an annual production capacity of 30 GWh, enough to power approximately 300,000 electric vehicles annually.
- Hyundai Mobis, a Hyundai subsidiary, will assemble battery packs using cells from the new plant and supply them to the group's U.S. manufacturing facilities to produce Hyundai, Kia, and Genesis EV models.
- LGES will now have seven battery plants in operation or under construction in the U.S., expanding its presence here.
The Big Picture: The joint venture is part of Hyundai and LGES' broader strategy to secure a leading role in the EV sector as global demand accelerates.
This initiative follows the construction of an EV battery cell plant in Indonesia, which is expected to begin production in the first half of 2024.
Hyundai CEO Jaehoon Chang has stated that the group aims to "secure a leading position in the global automotive industry" through focused electrification efforts.
The long-standing partnership between the two companies has already seen successful collaboration on EV batteries for various vehicle models, underscoring their continued commitment to EV production and the broader clean energy transition.