In an ambitious move to accelerate the electric vehicle (EV) revolution, South Korean giants Hyundai Motor Group and LG Energy Solution announced plans to invest $4.3 billion in constructing an electric vehicle battery plant on American soil.
Reinforcing the EV Market and Boosting US Economy
The joint venture between Hyundai and LG aims to reinforce the growing electric vehicle market in the United States. The project will not only serve the American auto industry but will also create thousands of jobs, bolstering the US economy. The plant is scheduled to be operational by 2025 after its construction begins in 2023.
“I am proud to see two world-renowned South Korean companies, Hyundai Motor Group and LG Energy Solution, join forces for a massive EV battery manufacturing facility in America,” said Se-hoon Park, the South Korean Ambassador to the United States, in a statement. “Their significant investment and commitment to our shared goal of building a sustainable future clearly demonstrate the strategic importance of the US market.”
Location and Production Capacity of Hyundai and LG
Though the specific site has not been disclosed, it is expected to be located either in Tennessee or Georgia. Once completed, the plant is projected to have an annual production capacity of up to 23 gigawatt-hours (GWh) of lithium-ion batteries, enough to power hundreds of thousands of electric vehicles.
Aiming for US Market Dominance
This new endeavor falls in line with Hyundai’s ambition to become a dominant player in the US EV market. The automaker has plans to roll out its Ioniq electric sub-brand in 2024 and bolster its electric lineup. The collaboration with LG, one of the world’s leading battery manufacturers, allows Hyundai to secure and streamline its battery supply chain, giving it a competitive edge.
“The partnership with LG Energy Solution ensures a stable battery supply for Hyundai’s EV lineup, which includes both sedans and commercial vehicles,” said Jae Hoon Chung, the CEO of Hyundai Motor Company. “This will help accelerate Hyundai Motor’s electrification efforts in the US market, ultimately benefiting American consumers and advancing our global sustainability objectives.”
A Win for the Environment
The venture is well-timed, as President Joe Biden’s administration has made green energy and electric vehicles a priority, pledging billions in funding to support EV manufacturing and charging infrastructure. As the US leans toward more sustainable and environmentally friendly transportation, Hyundai and LG’s mega-project will contribute to the nation’s transition from fossil fuels to clean energy.
In a statement, Myung-hwan Kim, CEO of LG Energy Solution, said, “This plant will not only strengthen our leadership in the global battery market but also contribute to the global carbon-neutrality movement by significantly reducing vehicle emissions and greatly enhancing energy efficiency.”
By joining forces, Hyundai and LG are poised to make a groundbreaking impact on the American EV market and global sustainability. As their ambitious project unfolds, it will undoubtedly pave the way for new electric vehicles, cleaner air, and a more eco-friendly future for all.