Hyundai and LGES to inject $2 billion more into Georgia battery factory
South Korean automobile manufacturer Hyundai Motor Group and battery producer LG Energy Solution Limited are planning to boost their battery cell manufacturing venture in Georgia by injecting an additional amount of $2 billion, bringing the total investment to more than $4.3 billion. Earlier this year, Hyundai and LG Energy announced the signing of memorandum of understanding (MoU), in which the two South Korean companies agreed to set up a battery cell factory at Hyundai Motor Group Metaplant America’s (HMGMA’s) facility in Bryan County. The battery cell plant in question is already under construction.
In accordance with the initial agreement signed between the collaborating companies, there is a commitment to a substantial joint investment of $7.59 billion to provide a boost to the growth of battery production as well as the production of EVs. This substantial financial infusion announced by the two partners reflects their shared commitment to advancing sustainable mobility solutions. The benefits of this investment are expected to go far beyond capital infusion alone, as it is projected to result in a new wave of economic prosperity for the local economy. The aforementioned investment over the span of the next eight years will produce job opportunities for an estimated 8,500 people, which will not only support local but also contribute to the overall economic development of the area.
The two collaborating partners’ exciting 50/50 joint venture (JV) with a substantial expected investment around $4.3 billion (approx. KRW 5.7 trillion) is taking shape in in Bryan County, in the Savannah area of Georgia. As already mentioned above, it is strategically located adjacent to the HMGMA. The primary focus of this JV is the production of lithium-ion cells for the South Korean manufacturer’s future EVs. The plant will reportedly have a formidable production capacity of 30 GWh per year. This impressive output is projected to power approx. 300,000 battery-powered vehicles, which reaffirms the South Korean automaker’s commitment to a sustainable future. Battery cell production is expected to kick off by the end of 2025.
Hyundai’s commitment to mass electrification of vehicle extends beyond the aforementioned battery project, as the automotive giant has also embarked on a distinct joint venture (JV) alongside SK Innovation's SK On for constructing a formidable 35-GWh battery plant in Bartow Centre, Georgia. LG Energy and SK On are Hyundai Motor Group's deep-rooted primary battery collaborators, and this enduring collaboration between the two sides are showing no signs of waning.