South Korea's Hyundai Motor and LG Energy Solution on Friday said they are going to build a $4.3 billion electric vehicle battery plant in the US, amid a push to take advantage of tax credits.
Manufacturers must adhere to new US sourcing requirements for EV battery components and critical minerals so that buyers of their vehicles can qualify for up to $7,500 in tax credits under the Inflation Reduction Act.
Vehicles from Hyundai Motor and sister car maker Kia Corp are currently not eligible.
Hyundai and LGES said construction of the factory in the south-eastern state of Georgia will begin in the second half of 2023, with battery production starting at the end of 2025 at the earliest.
It will have an annual production capacity of 30 gigawatt-hours – enough for 300,000 EVs, they said.
Hyundai Motor, the world's third-largest car maker by vehicle sales, is building EV and battery manufacturing facilities in Bryan County in the state, where its joint factory with LGES will be based.
LGES and Hyundai Motor, which houses Hyundai Motor, Kia and auto parts maker Hyundai Mobis, will each own 50 per cent of the joint venture. LGES supplies car makers including Tesla and General Motors.
“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America,” LGES chief executive Young-soo Kwon said.
In April, Hyundai Motor finalised a $5 billion EV battery joint venture in the US with SK On, a battery unit of SK Innovation, boosting electrification efforts in its largest market.
