Hyundai Motor Group said it will form a 50:50 joint venture with EV battery maker SK On to invest $5 billion in an electric vehicle (EV) battery cell production facility in the United States.
The manufacturing facility is expected to produce 35 GWh of EV battery cells annually by 2025, sufficient to support the production of 300,000 all-electric vehicles.
The two companies will also avail of the EV tax credits under the Inflation Reduction Act, which requires the final assembly of EVs within North America.
The plant will be established in Bartow County, Georgia, close to Hyundai’s U.S. production facilities, including Hyundai Motor Manufacturing Alabama, Kia Georgia, and Hyundai Motor Group Metaplant America.
Hyundai said the battery cell production plant will also help accelerate the group’s electrification efforts by stabilizing battery supply for EV production in America.
SK On and Hyundai Motor Group have been working together on the production of globally renowned EV models, such as Hyundai IONIQ 5, Kia EV6 and Genesis GV60.
Last year, SK On signed a memorandum of understanding with Hyundai to supply batteries to the latter’s EV assembly plants in the U.S., where it plans to manufacture diverse EV models.
In July 2022, Rolls-Royce and Hyundai announced plans to collaborate on bringing all-electric propulsion and hydrogen fuel cell technology to the advanced air mobility market. The partnership is aimed at leveraging Rolls-Royce’s aviation and certification capabilities and Hyundai Motor Group’s hydrogen fuel cell technologies and industrialization capability.
Last year, Hyundai Global Motors was one of the four companies that received approval from the Ministry of Heavy Industries for the Production-Linked Incentive program for advanced chemistry cells for energy storage. Reliance New Energy Solar, Ola Electric Mobility, and Rajesh Exports were the other three companies.
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