South Korea’s Hyundai Motor Group and LG Energy Solution on Friday May 26, said they will build a $4.3 billion electric vehicle battery plant in the United States amid a push to take advantage of tax credits.
In order for EV buyers to be eligible for tax credits worth up to $7,500 under the Inflation Reduction Act, manufacturers must comply with new U.S. sourcing requirements for critical minerals and battery components.
2023 New Vehicles: Snippets Of Information Released By Xpeng
Hyundai and LGES expressed that construction of the manufacturing plant in the territory of Georgia will start in the final part of 2023, with battery production starting at the end of 2025 at the earliest.
They stated that it will have a production capacity of 30 gigawatt hours per year, which is sufficient for 300,000 EVs.
Hyundai Motor Group, the world’s third-largest automaker by vehicle sales, is building EV and battery manufacturing facilities in Bryan County in the state, where its joint factory with LGES will be based.
“We aim to achieve EV sales of 2 million per year by 2030, according to our CEO”.
LGES and Hyundai Motor Group, which houses Hyundai Motor, Kia and auto parts maker Hyundai Mobis, will each own 50% of the joint venture.
The two strong leaders in the auto and battery industries have joined hands, to drive the EV transition in America.
In April 2020, Hyundai Motor finalized a $5 billion EV battery joint venture in the United States with SK On, a battery unit of SK Innovation, boosting electrification efforts in its largest market.
