Hyundai plans to hold onto its early success in the rapidly evolving US EV market. According to a new report, the South Korean automaker is mulling two additional battery plants in a joint venture with LG Energy Solutions.
After winning over US consumers with its first dedicated electric vehicle, the award-winning IONIQ5, Hyundai is in the midst of a once-in-a-lifetime business transformation.
Meanwhile, the automaker is at risk of a slowdown after the Inflation Reduction Act was passed in August. Although the IRA bill is designed to speed up EV adoption in the US, it includes strict battery sourcing and assembly requirements that disqualify many automakers, including Hyundai.
Hyundai, which announced its intentions to build its first dedicated US electric vehicle facility in March, has responded quickly.
The automaker broke ground on its $5.5 billion EV manufacturing facility in Bryan County, Georgia, on October 25, 2022, after several months of lobbying with US officials. The 3,000-acre project is the most extensive in Georgia’s history and expects to produce around 300,000 electric vehicles annually.
Hyundai looks to open its doors in 2025 but continues establishing its EV footprint in the US. Last week, a report from the Korean Economic Daily claimed Hyundai and SK On were planning a 50/50 joint venture to fund a $1.9 billion US EV battery plant. The South Korean automaker doesn’t look to be stopping there.
Hyundai and LG Energy considering two new US EV battery plants
According to the report, Hyundai and LG Energy Solution are considering two additional electric vehicle battery plants in Georgia near the automaker’s new facilities.
As the current plan suggests, each facility would have an annual capacity of around 35 GWh or enough to power around 1 million EVs. The South Korean news outlet cited an unnamed source.
The idea is for Hyundai to allow US consumers to take advantage of the tax benefits provided by the IRA bill. The joint venture would not be the first time Hyundai and LG Energy have discussed plans for an EV batty plant. In 2021, the partners signed an MoU to manufacture batteries in Indonesia.
Hyundai aims for 7% of the global EV market by the end of the decade with 1.87 million EV sales. To get there, building battery capacity will be key.