South Korean electric vehicle players Hyundai and LGES disclosed plans Thursday to invest another $2 billion in their joint battery cell factory at the Metaplant in Bryan County.
The press release also indicated that the two companies will recruit 400 more workers to boost power battery production at the new factory.
Plan highlights
This latest announcement signifies the duo’s decision to expand their recently launched partnership three months ago. They aim to locally produce power batteries to support Hyundai’s EV production ramp-up by 2025.
Establishing domestic EV and battery production will also enable the JV to access the subsidies under the Inflation Reduction Act. For context, the IRA offers up to $7,500 to qualified EVs and customers.
“In a single year, we broke ground on the largest project in state history, landed multiple suppliers across the state for Hyundai’s Metaplant, and welcomed LGES to Bryan County. Today, we’re building on that success as we continue to make Georgia the e-mobility capital of the nation. These types of major investments ultimately go to hardworking Georgians in the form of paychecks, improved schools and infrastructure, and more. Thank you to Hyundai Motor Group and LGES for again recognizing that the No. 1 state for business is a good investment.”
Governor Brian Kemp
Initial investment
In hindsight, the two South Korean partners officially inked a memorandum of understanding (MoU) in May 2023 to establish their Hyundai Motor Group Metaplant America’s (HMGMA) battery cell production joint venture.
Hyundai announced plans to invest $5.5 billion last year in a new electric vehicle factory in Georgia. It aims to begin mass production in H1 2025, with an annual production target of 300,000 EVs.
LGES and Hyundai’s battery JV aims to generate 30 GWh annual production capacity at the new battery factory to support the planned commercial production.
“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America. 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.”
LGES CEO Youngsoo Kwon said in a joint press release in May
Total investment as of 2023
With the recent report, the overall investment value for the Georgia plant has now expanded to more than $7.59 billion, as per The Associated Press.
Meanwhile, the battery facility has now reached a total investment of $4.3 billion.
The increased investment will enable the partners to recruit 8,500 employees to support the operation at the new factory.
“This incremental investment in Bryan County reflects our continued commitment to create a more sustainable future powered by American workers.”
José Muñoz, Hyundai Motor Company President and Global COO
See Also:
- Hyundai, LG to establish a $4.3 billion EV battery factory in Georgia
- Hyundai and LG are speculated to partner in constructing two massive battery plants
- Hyundai raises EV sales target to 2 million by 2030
- Honda, LG announced US joint venture to build 4.4 billion EV Battery Plant
- Hyundai will break ground on a $5.5 billion Georgia plant this month
The imminent launch of the new vehicle and battery factory will undoubtedly aid Hyundai in strengthening its presence in the US automotive industry. It can sufficiently support its electrification efforts, considering that it would gain access to federal tax credits of up to $7,500 once it brings its operations to the region.
