Hyundai plans to maintain its early success in the fast-growing US EV market. According to a new report, the South Korean automaker plans to build two joint venture battery plants with LG Energy Solutions.
After winning over US consumers with its first dedicated electric vehicle, the IONIQ5, Hyundai is in the midst of a once-in-a-lifetime business transformation.
Meanwhile, automakers are at risk of a slowdown following the passage of the Anti-Inflation Act in August. Although the IRA bill aims to accelerate the adoption of EVs in the United States, it includes strict battery sourcing and assembly requirements that disqualify many automakers, including Hyundai.
Hyundai has been quick to respond, having announced plans to build its first dedicated electric vehicle facility in the United States in March.
The automaker broke ground on its $5.5 billion electric car manufacturing facility in Bryan County, Georgia on October 25, 2022, after months of lobbying with U.S. officials. The 3,000-acre project is the largest in Georgia’s history and is expected to produce about 300,000 electric vehicles a year.
Hyundai is set to open its doors in 2025, but it’s still building its EV footprint in the US. Last week’s report Korean Economic Daily Hyundai and SK On said they planned to form a 50/50 joint venture to finance a US$1.9 billion electric car battery plant. It looks like the South Korean automaker won’t stop there.
Hyundai and LG Energy are considering two new electric battery plants in the US
Hyundai and LG Energy Solutions plan to build two additional electric vehicle battery plants near the automaker’s new facility in Georgia, according to reports.
Under current plans, each facility would have enough capacity to power 35 GWh per year, or about 1 million electric motors. The South Korean news agency reported, citing unnamed sources.
The idea is for Hyundai to allow US consumers to take advantage of the IRA bill’s tax breaks. The joint venture is not the first time Hyundai and LG Energy have discussed plans for an EV battery plant. In 2021, the partners signed a memorandum of understanding to produce batteries in Indonesia.
Hyundai aims to capture 7 percent of the global EV market by the end of the decade by selling 1.87 million EVs. To get there, increasing battery capacity is essential.
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