Published on May 30th, 2023 | by Subhash Nair0
Hyundai Motor Group And LG Energy Solution Form Joint Venture To Boost EV Battery Manufacturing In The US
Hyundai Motor Group & LG Energy Solution will build EV batteries in the USA.
Hyundai Motor Group and LG Energy Solution (LGES) have recently announced a strategic joint venture to manufacture electric vehicle (EV) battery cells in the United States. The partnership, marked by a memorandum of understanding signing ceremony in Seoul, South Korea, aims to accelerate the Group’s electrification efforts in North America. With an equal 50 percent stake from each company and an investment exceeding USD 4.3 billion, this collaboration sets the stage for the establishment of a new EV battery cell plant, further solidifying the Group’s position in the global EV market.
Hyundai Motor Group’s Focus on Electrification
Hyundai Motor Group, a global automotive leader, is committed to securing a leadership position in the electric vehicle industry. By joining forces with LG Energy Solution, a renowned global battery producer and a longstanding partner, the Group aims to strengthen its position in the global EV transition. The collaboration emphasizes Hyundai’s dedication to creating a sustainable and electric future for the automotive industry.
LG Energy Solution’s Expertise and Commitment
LG Energy Solution brings its expertise as a leading battery manufacturer and a focus on delivering sustainable energy solutions. With this joint venture, LG Energy Solution aims to leverage its global operational expertise and enhance product competitiveness. By expanding their production capacity, the company strives to meet the increasing demand for EV batteries in the United States and accelerate the clean energy transition in the region.
Significance of the Joint Venture
The joint venture between Hyundai Motor Group and LG Energy Solution will establish an annual production capacity of 30 GWh, allowing for the production of 300,000 electric vehicles annually. The new facility will be located in Bryan County, Savannah, Georgia, in close proximity to Hyundai Motor Group’s Metaplant America, which is currently under construction. Construction of the joint venture’s battery plant is set to begin in the second half of 2023, with battery production scheduled to commence by the end of 2025 at the earliest.
Supplying Hyundai, Kia, and Genesis EV Models
Hyundai Mobis, the automotive parts affiliate of Hyundai Motor Group, will assemble battery packs using cells from the new plant. These battery packs will be supplied to the Group’s manufacturing facilities in the United States, supporting the production of Hyundai, Kia, and Genesis EV models. By establishing a stable supply of batteries within the region, the joint venture enables the Group to respond promptly to the growing demand for EVs in the U.S. market.
LG Energy Solution’s Expansion in the U.S.
This joint venture reinforces LG Energy Solution’s commitment to expanding its battery production capacity in the United States. With seven battery plants currently operating or under construction in the country, LG Energy Solution is focused on providing innovative products on a large scale and with increased speed. By ramping up local production, the company aims to play a crucial role in expediting the clean energy transition in the U.S.
A History of Collaboration
Hyundai Motor Group and LG Energy Solution have a long-standing partnership in the field of electrification. The companies have previously worked together on supplying EV batteries for various vehicle models, including the Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV. Their collaboration dates back to the introduction of the Hyundai Elantra Hybrid, LPi hybrid vehicle in 2009. Additionally, both companies are currently working on a battery cell joint venture in Indonesia, set to commence production in the first half of 2024.
Future Prospects and Collaboration
The joint venture between Hyundai Motor Group and LG Energy Solution serves as a milestone in their partnership, aiming to strengthen their ties in the field of EV battery cooperation. By combining their expertise and resources, both companies are dedicated to driving the future of electric mobility and pushing the boundaries of innovation in the EV industry. Through ongoing collaboration and joint efforts, Hyundai Motor Group and LG Energy Solution are poised to play a pivotal role in shaping the global transition to clean and sustainable transportation.