Bloomberg News reported today (May 26) that Hyundai Motor Group and LG Energy Solution Ltd., the two giants from South Korea, will invest 5.7 trillion won (4.3 trillion won) to build an electric vehicle battery factory in the United States. This is in line with President Joe Biden’s clean energy tax law, which seeks to boost domestic manufacturing and reduce reliance on Chinese suppliers.
Hyundai Group, which also includes Hyundai Motor Co., Kia Corp, Genesis and LG Energy, will split the investment 50-50 to build a manufacturing plant in Bryan County, Georgia, with an annual production capacity of 30 gigawatt hours This is enough to produce 300,000 electric vehicle batteries, with construction starting in the second half of this year. And the production process will start by the end of 2025 at the earliest.
Jaehoon Chang, CEO of Hyundai Motor, said in a statement: “We will build a solid foundation to lead the global EV transition by building a new EV battery cell manufacturing facility with leading global battery manufacturer LG Energy Solution and a long-standing partnership. “
Automakers and EV battery makers are increasingly investing in the US to receive tax credits from climate change laws. President Joe Biden and to try to diversify the supply of EV batteries, a market dominated by China Contemporary Amperex Technology Co Ltd.
Youngsoo Kwon, CEO of LG Energy Solution, said, “Two strong leaders in the automotive and battery industry have come together. And we’re ready to drive the EV transition in the US. “
Hyundai and Kia delivered about 119,000 electric vehicles in the first quarter of 2023, down 2.2 percent from a year earlier.