LG and Hyundai to Build $4.3 Billion Battery Cell Manufacturing Unit in US
Both companies will hold a 50% stake in the joint venture
LG Energy Solution (LGES) and Hyundai Motor Group have announced a joint venture to manufacture electric vehicle (EV) battery cells in the United States. The partnership aims to accelerate the group’s electrification efforts in North America and establish a strong foundation for the global EV transition.
The JV will be in Bryan County, Savannah, Georgia, adjacent to Hyundai Motor Group Metaplant America, which is under construction.
With an investment of over KRW 5.7 trillion (~$4.3 billion), LGES and Hyundai Motor Group will each hold a 50% stake in the venture.
The new battery cell manufacturing facility is expected to have an annual production capacity of 30 GWh, enabling the production of approximately 300,000 EVs per year.
Construction of the facility is scheduled to commence in the second half of 2023, with battery production anticipated to begin by the end of 2025.
Hyundai Mobis, a subsidiary of Hyundai Motor Group, will assemble battery packs using cells 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 create a stable supply of batteries in the region and meet the increasing demand for EVs in the U.S. market.
LGES already operates or is constructing seven battery plants in the U.S.
LGES and Hyundai Motor Group have a longstanding partnership in the field of electrification, collaborating on the supply of EV batteries for various vehicle models.
Recently, LGES announced its plan to invest roughly KRW 7.2 trillion (~$5.5 billion) to build a battery manufacturing complex in Arizona.
In August last year, LGES and Honda announced they would establish a joint venture to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market. LGES and Honda had announced an investment of $4.4 billion in the plant. The plant aims to have an annual production capacity of approximately 40 GWh. The pouch-type batteries produced at the plant will be supplied exclusively to Honda facilities in North America.