2023-05-26 02:36:44
The US joint venture for finished cars and batteries in Korea is the second following Hyundai Motor Company and SK On.
Hyundai Motor Group and LG Energy Solutions will join hands to build a battery production plant in the US by investing 5.7 trillion won.
It is the second time Hyundai Motor Group is establishing a North American joint venture with a domestic battery company following SK On, and plans to actively respond to the US Inflation Reduction Act (IRA) through the ‘Battery Alliance’.
Hyundai Motor Group and LG Energy Solutions held a board meeting on the 26th and announced that they had decided to establish a battery production joint venture to supply electric vehicle batteries in North America.
The expected investment amount is 5.7 trillion won over six years until 2028. Hyundai Motor Group and LG Energy Solutions will each invest 50% for half of the total investment, and the other half will be financed by borrowing from the joint venture.
The production scale of the joint venture is regarding 30 gigawatt hours (GWh), which is an amount that can produce regarding 300,000 high-performance pure electric vehicles. The two companies plan to complete the joint venture establishment process soon and start construction of the plant in earnest from the second half of this year. It aims to start operation by the end of 2025 at the earliest.
This is the second ‘battery alliance’ between Hyundai Motor Group and LG Energy Solutions. Previously, the two sides invested regarding $1.1 billion in 2021 to establish a battery cell joint venture in the Karawang Industrial Complex near Jakarta, Indonesia, and are building a factory with the goal of completion in the first half of 2023. It plans to start mass production of battery cells from the first half of 2024.
Earlier, Hyundai Motor Group also formalized the establishment of a North American battery cell joint venture with SK On last month. Hyundai Motor Group and SK On are planning to invest a total of 6.5 trillion won to build a 35GWh plant in Bartow County, Georgia, USA, equivalent to regarding 300,000 electric vehicles.
Correspondent Changhyun Lee of Hellotti |
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