Hyundai, LG to Spend $2 Billion More on Georgia Battery Plant
Hyundai Motor Group and LG Energy Solution have announced plans to increase their joint investment in a battery manufacturing plant located in Georgia by an additional $2 billion. This expansion also includes the creation of 400 new jobs. The facility, a collaborative venture between the two companies, will now see a total investment of $4.3 billion and will ultimately have the capacity to produce approximately 300,000 electric vehicle (EV) batteries annually.
Hyundai, currently the world’s third-largest automaker in terms of vehicle sales, revealed that the two firms are now planning to commit a total of $7.59 billion to the project, generating 8,500 new job opportunities over an eight-year period in Bryan County, Georgia. This overall investment encompasses the battery plant, capable of producing 30 gigawatt hours (GWh) annually, as well as a separate EV manufacturing plant.
The production of vehicles at the auto manufacturing plant is scheduled to commence in January 2025, with a target of manufacturing 300,000 vehicles each year.
Both manufacturing facilities, collectively referred to as the “Metaplant,” have been incentivized by $7,500 consumer tax credits, as stipulated in the 2022 US Inflation Reduction Act. These credits require electric vehicles to be manufactured in the United States and introduce new sourcing requirements for critical minerals and battery components. The legislation also includes substantial US battery production tax credits.
Auto parts manufacturer Hyundai Mobis will assemble battery packs utilizing cells from the plant, subsequently delivering them to Hyundai Motor manufacturing facilities in the United States for the production of electric vehicles under the Hyundai, Kia, and Genesis brands.
Georgia Governor Brian Kemp highlighted that the state has successfully attracted multiple suppliers to support this burgeoning facility. Hyundai’s global Chief Operating Officer, Jose Munoz, mentioned last year that the Georgia plant could potentially scale up to produce 500,000 vehicles annually if market demand warrants it.
Additionally, in April, Hyundai Motor announced the finalization of a separate $5 billion electric vehicle battery joint venture in the United States in collaboration with SK On, a battery unit of SK Innovation Co. This move underscores the company’s commitment to the growing EV market in the country.
