What’s Happening: Hyundai Motor Group has announced plans to create a $5 billion electric vehicle (EV) battery cell production joint venture in the US with partner SK On. Hyundai Motor Company, Kia Corporation, and Hyundai Mobis have all approved the plan following the signing of a memorandum of understanding (MOU) with SK On in November 2022. The total investment for the joint venture is expected to be around $5 billion, with both the Group and SK On holding equal stakes.
Why It Matters: This joint venture is a significant move in the EV market, as it further accelerates Hyundai Motor Group’s electrification efforts and strengthens its position as an EV leader in the US market. By securing a stable battery supply, the Group will be better equipped to support the production of highly competitive EV models.
- The new EV battery cell plant is planned for Bartow County, Georgia, in close proximity to the Group’s US production facilities, including Hyundai Motor Manufacturing Alabama, Kia Georgia, and Hyundai Motor Group Metaplant America.
- The plant is expected to begin manufacturing battery cells in the second half of 2025, with an annual production capacity of 35 GWh. This capacity is sufficient to support the production of 300,000 EVs.
- Hyundai Mobis will assemble battery packs using cells from the new plant and supply them to the Group’s US manufacturing facilities for the production of Hyundai, Kia, and Genesis EV models.
- SK On has been a strategic partner for the Group, and both have collaborated on the production of globally renowned EV models, such as Hyundai IONIQ 5, Kia EV6, and Genesis GV60.
Bottom Line: The establishment of a $5 billion EV battery joint venture between Hyundai Motor Group and SK On represents a significant step in the expansion of EV production in the US. With a secure battery supply, Hyundai Motor Group can continue to lead the EV market and offer highly competitive models to consumers. The new plant, set to begin production in 2025, will support the manufacturing of up to 300,000 EVs per year, further solidifying the Group’s commitment to electrification and sustainable mobility.