Hyundai Finalizes $5 Billion In U.S. Battery Production Deal

Republished By Plato

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Hyundai Motor Group (HMG) has announced plans to construct an EV battery cell production factory in Bartow County, Georgia. The new facility will be a joint venture with South Korean battery manufacturer SK On intended to support HMG’s future EV production plans.

Kemp and Hyundai sign deal — Hyundai continues to expand its manufacturing footprint in Georgia, this time a $5 billion battery production facility in north Georgia.

The joint venture is intended to provide a stable supply of batteries for EV production in the U.S. beginning in the second half of 2025.

The component companies of Hyundai Motor Group, including Hyundai Motor Co., Kia Corp. and Hyundai Mobis have each approved the planned venture. Last November, HMG signed a memorandum of understanding with SK On to secure EV battery supply for North America, in compliance with the U.S.-made requirements for tax credits contained in the 2022 Inflation Reduction Act passed by the U.S. Congress and signed into law by President Joe Biden.

The total investment amount for the joint venture is expected to be approximately $5 billion, with HMG and SK On each holding a 50% stake. SK On is a part of the large South Korean conglomerate led by SK Innovation, a descendant company of the Korea Oil Corp. SK has multiple branches in petrochemicals, mining, energy production, and battery technology.

Coming to Georgia

Genesis Electrified GV70 - on assembly line — Genesis produces its Electrified GV70 at the Hyundai plant in Alabama.

The joint venture intends to establish an EV battery cell plant in Bartow County, Georgia, close to HMG’s U.S. production facilities, including Hyundai Motor Manufacturing Alabama, Kia Georgia and Hyundai Motor Group Metaplant America.

The new plant is expected to start manufacturing battery cells in Q3 or Q4 2025 with an annual production capacity of 35 GWh, which is sufficient to support the production of 300,000 EVs. Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to HMG’s U.S. manufacturing facilities for production of Hyundai, Kia and Genesis EV models.

The joint venture, according to Hyundai, further accelerates the group’s electrification efforts and bolsters its position as an EV leader in the U.S. market with a stable battery supply to support the production of highly competitive EVssuch as Kia’s Niro, EV6 and EV9, Hyundai’s Kona and Ioniq, and the Genesis GV60, Electrified GV70, and Electrified GV80.

Kia EV9 front 3-4 — The Kia EV9 will used batteries produced at the north Georgia plant eventually.

Hyundai’s Ioniq 6 recently won World Car of the Year honors as well as awards for World Electric Vehicle of the Year and Car Design of the Year. Additionally, SangYup Lee, head of design for HMG was named World Car’s 2023 Person of the Year.

Major Investment in South Korea

HMG is also investing heavily in domestic EV manufacturing in Gyeonggi Province in South Korea. Earlier this month, Kia executives broke ground on a new factory there that will have an initial annual capacity of 150,000 electric vehicles in 2025, with future growth expected. Altogether, Kia has stated an intention to invest almost $18 billion in EV manufacturing worldwide.

“Hyundai Motor, Kia, and Hyundai MOBIS together plan to invest KRW 24 trillion in the domestic electric vehicle industry by 2030, with the goal of making South Korea one of the top three players in the global EV market,” said Kia President and CEO Ho Sung Song, in a statement.

“Our focus is to enhance the competitiveness of the entire electric vehicle ecosystem, including research and development, production, and infrastructure, and to lead the way in driving change and innovation in the new global automotive industry.”