LG Energy Solution (LGES) and the Hyundai Motor Group will establish a new EV battery cell manufacturing joint venture in the U.S.
The companies signed a memorandum of understanding to produce EV batteries in the U.S. and support the Group’s electrification efforts further across North America. The signing ceremony took place at the LGES headquarters in Seoul on May 26 with the attendance of Youngsoo Kwon, CEO of LG Energy Solution and Jaehoon Chang, President and CEO of Hyundai Motor Company.
LGES and the Hyundai Motor Group will each hold a 50 percent stake in the JV, which itself will represent a total, combined, investment of over $4.3 billion (KRW 5.7 trillion/€4.0 billion). The annual production capacity of the new joint venture is expected to be 30 GWh, which would be enough to support the production of 300,000 EVs annually. These operations are expected to commence, at the earliest, by the end of 2025 following construction starting in the second half of 2023. The JV’s battery cell production facility will be located in Bryan County, Georgia – adjacent to Hyundai Motor Group’s Metaplant America, which is currently under construction.
Hyundai Mobis will assemble battery packs using cells from the JV’s plant, then supply them to the Group’s U.S. manufacturing facilities for the production of new Hyundai, Kia and Genesis EVs. The new facility will likewise support the development of a stable battery supply in the region and allow the Group to quickly respond to the U.S. market demand for EVs.
The JV follows a series of previous collaborations between the firms around EV batteries, having worked together on the supplies of EV batteries for the Elantra Hybrid, Kona Electric, and IONIQ 6. LGES and Hyundai Motor Group are aiming to further strengthen this synergy through their new EV battery cooperation.