- The new battery cell JV will be located in Bryan County, Savannah, Georgia where Hyundai Motor Group
Metaplant America is currently being built
- Total investment amount of over USD 4.3
billion; LGES and HMG to take a 50 percent stake
respectively
- JV's battery production aimed to start at the end of 2025
with an annual production capacity of 30 GWh, capable of supporting
the production of 300,000 EVs
- Building the second battery manufacturing JV,
LGES and Hyundai Motor Group aim to continue
strengthening the ties with their long-time partnership in
electrification efforts
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 the ultimate
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.
About LG Energy Solution
LG Energy Solution (KRX:
373220), a split-off from LG Chem, is a leading global manufacturer
of lithium-ion batteries for electric vehicles, mobility, IT, and
energy storage systems. With 30 years of experience in
revolutionary battery technology and extensive research and
development (R&D), the company is the top battery-related
patent holder in the world with over 25,000 patents. Its robust
global network, which spans North America, Europe, Asia,
and Australia, includes battery manufacturing facilities
established through joint ventures with major automakers such as
General Motors, Stellantis N.V., Hyundai Motor Group, and Honda
Motor Co., Ltd. At the forefront of green business and
sustainability, LG Energy Solution aims to achieve carbon neutral
operations by 2050, while embodying the value of shared growth and
promoting diverse and inclusive corporate culture. To learn more
about LG Energy Solution's ideas and innovations, visit
https://news.lgensol.com.
About Hyundai Motor Group
Hyundai Motor Group is a
global enterprise that has created a value chain based on mobility,
steel, and construction, as well as logistics, finance, IT, and
service. With about 250,000 employees worldwide, the Group's
mobility brands include Hyundai, Kia, and Genesis. Armed with
creative thinking, cooperative communication and the will to take
on any challenges, we strive to create a better future for all.
More information about Hyundai Motor Group, please
see: www.hyundaimotorgroup.com
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SOURCE LG Energy Solution