Another modern electric vehicle and battery manufacturing plant under construction in Georgia, USA, April 17, 2023.
Elijah Nuviraqi | Bloomberg | Getty Images
South Korea’s Hyundai Motor Group and LG Energy Solution said on Friday they will build a $4.3 billion electric vehicle battery plant in the United States in a push to take advantage of tax credits.
Manufacturers must comply with the new U.S. Purchasing requirements EV battery components and key minerals so that buyers of their vehicles can qualify for a tax credit of up to $7,500 under the Inflation Reduction Act.
vehicle from Hyundai Motor and sister automaker Kia are not currently eligible.
Hyundai and LGES said construction of the Georgia plant would begin in the second half of 2023 and battery production would start as early as late 2025.
The plant will have an annual production capacity of 30 gigawatt hours, enough to produce 300,000 electric vehicles, they said.
Hyundai Motor Group, the world’s third-largest automaker by vehicle sales, is building an electric vehicle and battery manufacturing facility in Bryan County, where its joint factory with LGES will be located.
LGES and Hyundai Motor Group, which owns Hyundai Motor, Kia and auto parts maker Hyundai Mobis, will each own 50 percent of the joint venture.
LGES supplies automakers including tesla and General Motors.
LGES CEO Youngsoo Kwon said in a statement: “Two powerful leaders in the automotive and battery industries have come together and together we are ready to drive America’s electric vehicle transition.”
April, Hyundai finalize Formed a $5 billion EV battery joint venture in the US with SK Innovation’s battery unit SK On to boost electrification efforts in its largest market.