The parties signed a memorandum of understanding (MOU) in Georgia on November 28, where Hyundai is constructing its first facilities specifically for electric vehicles.
A new EV battery plant will be built in the US with investment from the Hyundai Motor Group and SK On totaling about $5 billion.
The parties signed a memorandum of understanding (MOU) in Georgia on November 28, where Hyundai is constructing its first facilities specifically for electric vehicles.
Hyundai and SK completed the plans for their battery cell manufacturing facility in North America on Tuesday. Hyundai and SK On have decided to locate their new EV battery manufacturing facility in Bartow County, Georgia, according to a press release from the South Korean automaker.
Since May, discussions between Hyundai and SK have focused on constructing a joint battery plant in the US. Progress has been hampered, though, by disagreements over how much would go to each partner.
Hyundai outlined its strategy for how it intends to develop into a leading EV manufacturer globally, complete with domestic battery sourcing, in March. Hyundai announced that it would erect its first specific electric vehicle plant in Bryan County, Georgia, in order to increase production levels in the US.
The $5.5 billion EV factory was initially planned to start commercial production in 2025, but the South Korean automaker accelerated its timeline after the Inflation Reduction Act was passed in August.
Hyundai started construction on its new facility on October 25 in order to meet the IRA bill’s requirements for battery sourcing and assembly and to guarantee that its customers will be eligible for the tax credit.
The final details are becoming clear, despite disagreements delaying its US battery plant up until this point. In Bartow County, Hyundai and SK On will construct their new electric vehicle battery factory, which will supply Kia and Genesis plants as well as the rest of The Hyundai Motor Group.
For the new Hyundai models being produced at its new facility in Bryan County, Georgia, the new battery plant will provide pouch-type EV batteries. For its award-winning IONIQ5, the recently released IONIQ6, and Kia’s EV6, Hyundai already uses SK batteries.
They will also be used by the automaker in the upcoming IONIQ7 SUV, Genesis GV70, and Kia EV9. After final board approval, the joint venture’s new battery plant is anticipated to begin production in 2025.
The new facility will be situated at Bartow Centre, which is situated along Highway 411. Additionally, the automaker and LG Energy have discussed building two more EV battery plants in the US, with a combined capacity of about one million EVs.
With strong demand and award-winning models, the Hyundai Motor Group has been successful in making the switch to electric vehicles so far as it seeks to capitalise on the rapidly changing US auto market. Tuesday saw the completion of plans for a $5 billion joint venture between Hyundai and SK On to produce EV battery cells.
In the second half of 2025, production of battery cells is anticipated to start at the facility. Hyundai anticipates a 35 GWh annual production capacity once everything is up and running to support the introduction of Hyundai, Kia, and Genesis EVs.