LGES, Hyundai Motor Form JV for $4.3 Bn Battery Manufacturing

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Global EV conglomerates LG Energy Solution (LGES) and Hyundai Motor Group have announced an EV battery cell manufacturing joint venture in the USA by signing an MoU.

Under the agreement, LGES and Hyundai Motor will produce EV batteries in the USA and further accelerate the electrification efforts of Hyundai Motor in North America. The signing of the MoU took place in LGES’s headquarters in Seoul.

LGES and Hyundai Motor Group will each hold a 50 per cent stake in the JV, which will involve the investment of over $4.3 billion (KRW 5.7 trillion).

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The annual production capacity of the new joint venture is at 30 GWh, able to support the production of 300,000 units of electric vehicles annually. The facility will be in Bryan County, Savannah, Georgia adjacent to Hyundai Motor Group Metaplant America, currently under construction.

Starting construction in the second half of 2023, the joint venture plans to start battery production at the end of 2025 at the earliest.

Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to the US manufacturing facilities of Hyundai Motor for production of Hyundai, Kia and Genesis EV models. The new facility will help create a stable supply of batteries in the region and allow the Group to respond fast to the soaring EV demand in the USA market.

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With this JV, LGES now has seven battery plants currently operating or being constructed in the US., where the company is concentrating most of its resources to expand the production capacity.

Youngsoo Kwon, CEO of LGES, said, “By further advancing our product competitiveness and global operational expertise, LG Energy Solution will commit our best efforts to offering the ultimate sustainable energy solutions to our customers.”

Jaehoon Chang, President and CEO of Hyundai Motor Company, stated, “Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry. We will create a strong foundation to lead the global EV transition through establishing a new EV battery cell plant with LGES, a leading global battery producer and long-time partner.”

Standing Partners

LGES and Hyundai Motor Group have long been partners in the field of electrification having worked on the supplies of EV batteries for vehicles, including Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV. The Hyundai Elantra Hybrid, LPi hybrid vehicle introduced in 2009, was the Group’s first electrified model.

In 2021, both started construction of the Indonesia battery cell JV which is set to start production in the first half of 2024.