Hyundai and LG invest US$ 4.3 billion in electric battery factory in the USA

The Hyundai Motor Group of Coréia do Sul and LG Energy Solution Ltd announced in this sixth fair that they will build a battery factory for electric vehicles (EV) of US$ 4.3 billion in the United States in an effort to take advantage of fiscal credits .

Manufacturers must add to the new US supply requirements for critical electric and mineral vehicle battery components so that buyers of their Possam vehicles will qualify for at least US$7,500 in tax credits under the Inflation Reduction Act (IRA). .

The vehicles of Hyundai Motor Co and of the firm Kia Corp assembly company cannot be chosen at the moment.

Hyundai and LGES stated that the construction of the factory in the state of Georgia will begin in the second half of 2023, with the production of batteries beginning by the end of 2025, at least.

It will have an annual production capacity of 30 gigawatt-hours (GWh), enough for 300,000 EVs, disseram els.

The Hyundai Motor Group, the world’s third largest automaker in auto sales, is building an EV and battery manufacturing facility in Bryan County, out of state, where its joint factory with LGES will be based.

LGES and the Hyundai Motor Group, which includes Hyundai Motor, Kia and the automaker Hyundai Mobis Co Ltd, will each acquire 50% of the joint venture.

LGES supplies automakers, including Tesla and General Motors.

“Two strong leaders in the automotive and battery industries will unite and, together, we are ready to lead the transition for electric vehicles in America,” said Youngsoo Kwon, CEO of LGES, in a statement.

In April, Hyundai Motor finalized a US$5 billion joint venture for EV batteries in the United States with SK On, a battery unit of SK Innovation Co Ltd, boosting the efforts of electrification in its largest market.