LG and Hyundai have announced plans to establish a joint venture and invest $4.3 billion in constructing a new EV battery cell factory in Savannah, Georgia, USA. The facility will be located next to Hyundai’s upcoming all-electric vehicle (EV) plant. The battery plant, expected to start operations no earlier than 2025, will have an annual production capacity of 30 gigawatt-hours (GWh), supporting the manufacturing of approximately 300,000 electric vehicles.
Rising Trend: LG and Hyundai Join US Battery Manufacturing Investments
This collaboration reflects the growing trend of companies investing in battery manufacturing facilities within the United States. Toyota, Ultium Cells (a GM and LG joint venture), and Ford have also made significant investments in battery production in recent years. The Biden administration’s focus on promoting domestic EV and battery manufacturing demonstrated through initiatives like the American Battery Materials Initiative, further encourages industry growth in the country.
By establishing this battery manufacturing facility, LG and Hyundai aim to ensure a stable supply of batteries and efficiently meet the increasing demand for EVs in the US market. Hyundai Mobis, the automaker’s parts and service division, will utilize the battery cells produced at the plant to assemble battery packs for Hyundai, Kia, and Genesis electric vehicles.