South Korean technology firm Hyundai Motor Group announced plans on April 25 to form a $5 billion joint venture with its partner SK On to develop a new battery cell production plan in the United States.
In hindsight, the two major firms inked a Memorandum of Understanding (MoU) on North American EV battery supply last November 2022. The Group and SK On have also collaborated on producing popular EV models such as the Hyundai IONIQ 5, Kia EV6, and Genesis GV60.
Now, the Group subsidiaries (Hyundai Motor Company, Kia Corporation, and Hyundai Mobis) gave the green light to the planned US battery cell plant at their board meetings on Tuesday.
Investment
The press release disclosed that the partnership’s investment for the new JV is about $5 billion, with a 50% stake from both parties.
With this enormous investment, the partnership aims to build an EV battery cell manufacturing facility in Bartow County, Georgia.
The site is located near the Group’s US production plants: Hyundai Motor Manufacturing Alabama, Hyundai Motor Group Metaplant America, and Kia Georgia.
The partnership plans to begin production at the new battery cell plant in H2 2025, with a production rate target of 35 GWh per year.
Notably, that capacity can adequately supply 300,000 electric vehicles from the Group.
According to the company, Hyundai Mobis will construct battery packs utilizing cells from the plant. These batteries will power Hyundai, Kia, and Genesis electric models in the Group’s US production plants.
See Also:
- Hyundai, SK On sign EV battery supply pact for North America
- Hyundai Motor Group announces $18 billion investment in South Korean EV industry by 2030
- The 2024 Hyundai Kona officially debuts with EV and ICE powertrains
- EPA has given the Hyundai Ioniq 6 outstanding range scores
- Hyundai Motor reports about 25,000 plug-in car sales in November 2022
Indeed, this new joint venture will strengthen Hyundai Motor Group’s stance as a major player in the US auto market. It will guarantee the Group’s battery supply stability, aiding its production of potent EV models, including the new IONIQ7 SUV, Genesis GV70, and Kia EV9.
