Hyundai Motor Group and LG Energy Solution of South Korea announced on May 26 that they will invest a total of US$4.3 billion in the construction of an electric vehicle (EV) battery plant in the United States.
The Hyundai-LGES plant in Georgia, which will begin construction in the second half of 2023, plans to begin battery production by the end of 2025 at the earliest.
According to Hyundai and LG, it will have an annual production capacity of 30 gigatonne-hours (GWh), enough to support the production of 300,000 EVs each year.
Hyundai Motor Group, which includes Hyundai Motor and Kia, and LGES will each have a 50% stake in the joint venture.
The move follows the implementation of new US sourcing requirements for EV battery components and critical minerals in order for car buyers to qualify for up to $7,500 in credits under the Biden administration's Inflation Reduction Act (IRA).
Hyundai and Kia vehicles are currently ineligible for tax credits.