LG Energy Solution and Hyundai Motor Group have announced plans to establish a joint venture plant for electric car batteries in the United States.
The contract signing ceremony took place at LG Energy Solution's headquarters in Seoul on May 26, with Hyundai Motor Company CEO Jang Jae-hoon and LG Energy Solutions Vice Chairman Kwon Young-soo in attendance.
“Hyundai Motor Group is concentrating on consolidating its leadership in global electric vehicles and transitioning to electrification," said Hyundai Motor Company President Jang Jae-hoon during the signing ceremony. "Through the establishment of a joint plant with LG Energy Solution, a leading global battery company and key partner, we will win the global electric vehicle competition. We will prepare a foothold to catch up.”
“Hyundai Motor Group, a powerhouse in the global automobile industry, and LG Energy Solutions, a leader in the battery industry, will join hands to lead the North American electric vehicle market," said Vice Chairman Kwon Young-soo of LG Energy Solution. "We will provide the world's best customer value by further strengthening our differentiated global production capabilities and unrivaled product competitiveness."
The joint venture plant will be constructed in Savannah Bryan County, Georgia, USA, where Hyundai Motor Group's Metaplant America (HMGMA) is being built. HMGMA is an electric vehicle-only plant scheduled for completion in 2025. The joint venture's production scale is approximately 30GWh, which can produce around 300,000 high-performance pure electric vehicles.
Both companies plan to expedite the establishment process of the joint venture and commence construction of the plant in the second half of this year. The earliest target for the plant's operation is the end of 2025. The total investment amount for the project is 5.7 trillion won (over $4.3 billion), with each company holding a 50% stake in the joint venture.
The battery cells produced at the joint plant will be assembled into battery packs by Hyundai Mobis and supplied to all electric vehicles manufactured by Hyundai Motor Group's US plants, including HMGMA, Hyundai Motor's Alabama plant, and Kia's Georgia plant.
This joint venture with Hyundai Motor Group marks LG Energy Solution's second partnership for battery cells, following the establishment of a joint venture in Indonesia in 2021. Currently, the two companies are also constructing a 10GWh joint battery plant in the Karawang Industrial Complex in Indonesia.
The purpose of this facility is to target the ASEAN electric vehicle market and secure a leading position in the global electric vehicle industry, with mass production set to commence in the first half of next year.
Meanwhile, LG Energy Solution and Hyundai Motor Group have been collaborating as key partners in the future electric vehicle market. They have worked together to supply batteries for notable eco-friendly vehicles, including the Kona Electric and Ioniq 6. This collaboration began in 2009 with the Hyundai Motor Group's first eco-friendly car, the Avante LPi Hybrid.
