LG Energy Solution and Hyundai Motor Group to Establish Battery Cell Manufacturing Joint Venture in the U.S.
SEOUL, South Korea, May 26, 2023 /PRNewswire/ -- LG Energy Solution (LGES) and Hyundai Motor Group announced an EV battery cell manufacturing joint venture in the U.S. today.
LGES and Hyundai Motor Group signed a memorandum of understanding to produce EV batteries in the U.S. and further accelerate the Group's electrification efforts in North America. The signing ceremony took place in LGES's headquarters in Seoul on May 26 with the attendance of Youngsoo Kwon, CEO of LG Energy Solution and Jaehoon Chang, President and CEO of Hyundai Motor Company.
LGES and Hyundai Motor Group will each hold a 50 percent stake in the JV, which will involve the investment of over USD 4.3 billion (KRW 5.7 trillion).
"Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America," said Youngsoo Kwon, CEO of LG Energy Solution. "By further advancing our product competitiveness and global operational expertise, LG Energy Solution will commit our best efforts to offering theultimate sustainable energy solutions to our customers."
"Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry. We will create a strong foundation to lead the global EV transition through establishing a new EV battery cell plant with LG Energy Solution, a leading global battery producer and long-time partner," said Jaehoon Chang, President and CEO of Hyundai Motor Company.
The annual production capacity of the new joint venture is at 30 GWh, able to support the production of 300,000 units of EVs annually. The facility will be in Bryan County, Savannah, Georgia adjacent to Hyundai Motor Group Metaplant America, currently under construction.
Starting construction in the second half of 2023, the joint venture plans to start battery production at the end of 2025 at the earliest.
Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to the Group's U.S. manufacturing facilities for production of Hyundai, Kia and Genesis EV models. The new facility will help create a stable supply of batteries in the region and allow the Group to respond fast to the soaring EV demand in the U.S. market.
With this JV, LGES now has seven battery plants currently operating or being constructed in the U.S., where the company is concentrating most of its resources to expand the production capacity. By ramping up its local production, LGES aims to provide innovative products both in scale and with speed, thereby expediting the clean energy transition in the U.S.
LGES and Hyundai Motor Group have long been partners in the field of electrification having worked on the supplies of EV batteries for vehicles, including Elantra Hybrid, Kona Electric, and IONIQ 6 dedicated EV. The Hyundai Elantra Hybrid, LPi hybrid vehicle introduced in 2009, was the Group's first electrified model. In 2021, both started construction of the Indonesia battery cell JV which is set to start production in the first half of 2024.
LGES and Hyundai Motor Group aim to further strengthen the ties going forward with the EV battery cooperation.
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SOURCE LG Energy Solution