Hyundai Motor Group and L.G. Energy Solution Ltd (LGES) (373220. K.S.) said Friday that they would establish a $4.3 billion electric vehicle (E.V.) battery plant in the U.S. to take advantage of tax advantages.
Manufacturers must get EV battery components and key minerals from the U.S. to qualify for up to $7,500 in Inflation Reduction Act (IRA) tax credits.S.
Hyundai and Kia’s vehicles are ineligible.
Hyundai and LGES said the building of the Georgia factory will begin in the second half of 2023, with battery production beginning in late 2025.
They said it would produce 300,000 EVs annually with 30 gigawatt-hours (GWh).
Hyundai Motor Group, the world’s third-largest carmaker by sales, is establishing E.V. and battery manufacturing facilities in Bryan County, where its joint plant with LGES will be located.
LGES and Hyundai Motor Group, which includes Hyundai Motor, Kia, and auto parts maker Hyundai Mobis Co Ltd (012330. K.S.), will control 50% of the joint venture.
Tesla Inc (TSLA.O) and General Motors Co (GM.N) use LGES.
“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the E.V. transition in America,” LGES CEO Youngsoo Kwon said.
In April, Hyundai Motor launched a $5 billion U.S. EV battery joint venture with SK On, a battery business of S.K. Innovation Co Ltd (096770. K.S.), to increase electrification in its largest market.
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