The factory will be located in Georgia where the South Korean automaker is currently building an electric vehicle facility.
Hyundai Motor Group and LG Energy Solution (LGES) have signed a memorandum of understanding to construct a $4.3 billion electric vehicle battery plant in Bryan County, Savannah, Georgia. The new plant is set to be constructed adjacent to the currently developed Hyundai Metaplant America, where the South Korean carmaker aims to produce 300,000 EV units annually beginning in early 2025.
Starting construction later this year, the now-announced plant is set to supply the EV production with the required batteries, however, the manufacturing is scheduled to begin in late 2025 at the earliest, according to a joint statement. Hyundai and LGES will each hold a 50 percent share in the venture.
LGES and Hyundai Motor Group have a history of cooperation in electromobility, as LGES manufactured the batteries for Hyundai’s first electrified car, the 2009 Hyundai Elantra Hybrid, LPi hybrid vehicle. The two companies are also developing a joint EV battery plant in Indonesia, which is set to start production in 2024.
LGES is supplying multiple competitors of Hyundai in the domestic U.S. market, most famously General Motors and Tesla. General Motors currently operates one plant with LGES and has two additional facilities planned. However, plans for a fourth joint venture were ultimately scrapped in favor of fellow Korean battery manufacturer Samsung SDI.