Hyundai, LGES to build $4.3 billion gigafactory in Georgia
South Korean companies Hyundai Motor Group and LG Energy Solution (LGES) plan to start construction on a $4.3 billion battery gigafactory in the US in the second half of the year, Kallanish reports.
The manufacturers said in a joint statement on Friday that the new 30 gigawatt-hour plant is slated to start production in late 2025. The facility, to be built in Savannah, Georgia, will produce cells to power 300,000 EVs from the Hyundai Motor Group.
Despite the plans to start construction soon, the 50-50 JV partners didn’t provide information on permitting matters.
The facility will be based in Bryan County, adjacent to the Hyundai’s Megaplant America project, currently under construction. The cells will be assembled into battery packs by Hyundai Mobis and then supplied to the group’s US manufacturing facilities for production of Hyundai, Kia and Genesis EVs. This setting is similar to the arrangement Hyundai has with SK On under their $5 billion JV to build 35 GWh of cell capacity also in Georgia.
“Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America,” LGES chief executive Youngsoo Kwon said during a MOU signing ceremony in Seoul.
The battery manufacturer is undergoing a massive expansion in North America, with seven gigafactories currently under construction. These include JVs with General Motors, Stellantis and Honda, as carmakers rush to establish a stable supply of batteries in the region ahead of anticipated high demand growth.
LGES and Hyundai are also building a gigafactory in Indonesia planned to start cell production in the first half of 2024.
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