The companies will each hold a 50 percent stake in the plant, with a total investment of $4.3 billion (KRW 5.7 trillion). The facility is expected to have an annual capacity of 30 GWh, enabling it to supply batteries for approximately 300,000 electric vehicles per year.
Jaehoon Chang, President and CEO of Hyundai, emphasized the automaker's commitment to electrification, stating, "Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry. We will create a strong foundation to lead the global EV transition through establishing a new EV battery cell plant with LG Energy Solution, a leading global battery producer and long-time partner."
The newly announced battery facility will be situated adjacent to Hyundai's $5.5 billion Meta Plant in Savannah, which will be responsible for producing vehicles based on the E-GMP platform, including the Hyundai Ioniq 7 and the Kia EV9.
This battery plant is just one of several planned by the Hyundai Group in Georgia. In April, the company unveiled a $5 billion battery production location in Bartow County. According to reports, there are further plans for additional plants, all with the aim of commencing battery production in the second quarter of 2025, coinciding with the Meta Plant's readiness to manufacture vehicles.
The establishment of the new battery facility is expected to enhance the eligibility of Hyundai and Kia electric vehicles for federal tax subsidies of up to $7,500. These incentives are available only for vehicles whose critical components are manufactured and sourced in the United States or its trading partners, prompting many automakers to invest in American manufacturing plants.
The groundbreaking ceremony for the Savannah battery facility is anticipated to take place in the latter half of this year, marking another milestone in the Hyundai Group's pursuit of electrification and its commitment to the American market.
Source: Hyundai
