Hyundai Motor Group Announces Plans to Build Electric Vehicle Battery Plant in the U.S.
In a significant move, Hyundai Motor Group has announced plans to set up a $5 billion battery cell production joint venture in the United States with SK On, a leading South Korean battery manufacturing firm. This partnership is part of Hyundai’s efforts to expand its electric vehicle (EV) business and meet the growing demand for sustainable mobility solutions.
GM Partners with Samsung SDI to Build EV Battery Plant
Separately, General Motors (GM) has announced plans to partner with Samsung SDI to jointly invest $3 billion in an EV battery plant. The new facility will be established in the United States and is expected to start production in 2026. This move is part of GM’s efforts to strengthen its position in the EV market and meet the Biden administration’s requirements for EV tax credits.
U.S.-Based Battery Production Essential for EV Tax Credits
The announcements come as the Biden administration’s new battery sourcing rules, which restrict full $7,500 tax credit eligibility to vehicles with battery materials procured and processed in the U.S. or by trade agreement partners, have taken effect. Automakers, both foreign and domestic, are racing to build battery supply chains nationally to be eligible for these incentives.
Hyundai’s Partnership with SK On
Hyundai’s partnership with SK On follows the signing of a memorandum of understanding (MOU) in November 2022. Both companies will hold a 50% stake in the $5 billion investment. The joint venture, which is expected to establish a battery cell plant in Bartow County, Georgia, is set to start manufacturing battery cells in the second half of 2025.
Capacity and Production
The new plant is expected to have an annual production capacity of 35 GWh, which should support the production of approximately 300,000 EVs. Hyundai’s parts and services arm, Mobis, will assemble battery packs with cells from the plant and supply them to the automaker for use in upcoming Hyundai, Kia, and Genesis EV models.
GM’s Plans for Battery Production
GM is expected to start producing battery cells at its new factory in 2026, with a capacity of more than 30 GWh. This will bring GM’s total U.S.-based battery cell capacity to approximately 160 GWH. The automaker is also building four other battery factories in the United States.
Types of Battery Cells
GM has stated that the production lines at its new plant will build "nickel-rich prismatic and cylindrical cells." Prismatic and cylindrical cells are two of the three types of EV battery cells, with GM’s Ultium battery platform currently using pouch-style batteries for most of its vehicles.
Automakers Taking Control of Supply Chains
The partnerships between Hyundai, SK On, and GM-Samsung SDI reflect a broader trend in the automotive industry. As automakers face increasing pressure to meet growing demand for EVs and comply with government regulations, they are taking control of their supply chains by investing in battery production facilities.
The Significance of U.S.-Based Battery Production
The establishment of these new battery plants in the United States is significant because it enables automakers to reduce their reliance on imports and increase their competitiveness in the EV market. By meeting the Biden administration’s requirements for EV tax credits, Hyundai and GM are positioning themselves for success in the rapidly growing EV sector.
The Future of Electric Vehicles
The partnership between Hyundai and SK On marks a major milestone in the development of sustainable mobility solutions. As consumers increasingly prioritize environmentally friendly options, automakers must adapt to meet this demand. By investing in battery production facilities, Hyundai and GM are demonstrating their commitment to creating a more sustainable transportation ecosystem.
Conclusion
The announcements by Hyundai and General Motors reflect a new era in the automotive industry, with a focus on sustainability, innovation, and competitiveness. As governments around the world implement policies to encourage the adoption of EVs, automakers must be prepared to meet this demand and adapt to changing market conditions. The partnerships between Hyundai, SK On, and GM-Samsung SDI are significant steps towards creating a more sustainable transportation ecosystem.
Additional Resources
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