What’s Happening
LG Energy Solution (LGES) and Hyundai Motor Group have unveiled a collaborative venture to manufacture electric vehicle (EV) battery cells in the United States. The two companies officially signed a memorandum of understanding on May 26 at the LGES headquarters in Seoul, with notable attendees being Youngsoo Kwon, CEO of LG Energy Solution, and Jaehoon Chang, President and CEO of Hyundai Motor Company.
Why It Matters
This joint venture signifies an acceleration in both LGES and Hyundai Motor Group’s electrification efforts within the North American market. Each organization will hold an equal 50 percent stake in the partnership, injecting over USD 4.3 billion into the endeavor. It is a testament to their shared commitment towards enabling the transition to sustainable energy, particularly within the automotive industry.
Key Points
The newly established joint venture boasts an annual production capacity of 30 GWh, supporting the production of approximately 300,000 EVs every year. The manufacturing facility will be situated in Bryan County, Savannah, Georgia, adjacent to Hyundai Motor Group’s Metaplant America, which is presently under construction.
Construction of the battery cell manufacturing plant is slated to commence in the second half of 2023, with battery production projected to kick-off towards the end of 2025 at the earliest. Hyundai Mobis will leverage cells from this plant to assemble battery packs, which will then be supplied to the Group’s US manufacturing facilities for the production of Hyundai, Kia, and Genesis EV models.
Bottom Line
With the establishment of this joint venture, LGES expands its US battery plant portfolio to seven. The company aims to intensify its local production capabilities, providing innovative solutions at scale and speed, thereby facilitating a quicker transition to clean energy within the US.
This partnership also deepens the long-standing ties between LGES and Hyundai Motor Group in the realm of vehicle electrification. Having previously collaborated on the supply of EV batteries for models such as the Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV, this venture underscores their shared vision to fortify EV battery cooperation in the years to come.
