According to Dailian, a South Korean media outlet, Hyundai and LG Energy Solution are considering the construction of two joint battery factories, each with an annual production capacity of 35 GWh, near Hyundai’s new factory in Georgia. These factories will greatly help Hyundai to obtain new federal tax credits for electric vehicles.
The plan requires that 40% of battery materials and 50% of battery components be sourced in the United States or from countries/regions with free trade agreements with the United States. In addition, the vehicles themselves must be assembled in the United States. By 2027, this ratio will increase to 80% over the next four years. LG Energy Solution (LGES) is also a major battery supplier for General Motors.
In another news report, the South Korean newspaper, the Economic Daily, stated that Hyundai and SK On will also build a $2 billion battery factory near Hyundai’s new factory in Georgia. The factory is scheduled to start production in the first quarter of 2026, with an annual production capacity of 20 GWh.
SK On will produce pouch-type high-nickel batteries for Hyundai’s new factory near Savannah, its existing factory in Montgomery, Alabama, and Kia’s factory in West Point, Georgia. SK On already operates two battery manufacturing factories in Georgia and has secured land for two additional factories in the state.
Most of Hyundai and Kia’s electric vehicles use SK On’s pouch-type batteries, including the IONIQ 5 and IONIQ 6. They will power the expected IONIQ 7 SUV and Genesis GV70 EV, which will be produced next year at Hyundai’s factory in Alabama. Kia’s EV6 and the upcoming EV9 SUV, which will be released in April 2023, also use pouch-type batteries.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.