South Korea’s Hyundai Motor Group and LG Energy Solution Ltd (LGES) (373220.KS) said on Friday they will build a $4.3 billion electric vehicle (EV) battery plant in the United States amid a push to take advantage of tax credits.
Manufacturers must comply with new US sourcing requirements for EV battery components and critical minerals in order for buyers of their vehicles to qualify for up to $7,500 in tax credits under the Energy Reduction Act. Inflation (IRA).
Vehicles from Hyundai Motor Co (005380.KS) and sister automaker Kia Corp (000270.KS) are currently not eligible.
Hyundai and LGES said that construction of the factory in the state of Georgia will begin in the second half of 2023, with battery production to begin in late 2025 at the earliest.
It will have an annual production capacity of 30 gigawatt-hours (GWh), enough for 300,000 electric vehicles, they said.
Hyundai Motor Group, the world’s third-largest automaker by vehicle sales, is building battery and electric vehicle manufacturing facilities in Bryan County in the state, where its joint factory with LGES will be located.
LGES and Hyundai Motor Group, which houses Hyundai Motor, Kia and auto parts maker Hyundai Mobis Co Ltd (012330.KS), will each own 50 percent of the joint venture.
LGES supplies car manufacturers including Tesla Inc (TSLA.O) and General Motors Co (GM.N).
“Two strong leaders in the auto and battery industries have come together, and together we stand ready to drive the EV transition in America,” LGES CEO Youngsoo Kwon said in a statement.
In April, Hyundai Motor finalized a $5 billion EV battery joint venture in the United States with SK On, a battery unit of SK Innovation Co Ltd (096770.KS), boosting electrification efforts in its largest market. .
($1 = 1,320.9300 won)
Category: Korea
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