“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,” Jaehoon Chang, CEO of Hyundai Motor Co. said in the statement.
Automakers and EV battery makers alike are increasingly rushing to make investments in North America in order to receive tax credits provided by Biden’s landmark climate change bill, the Inflation Reduction Act. Carmakers are also seeking to diversify their supply of EV batteries, a market that’s dominated by China’s Contemporary Amperex Technology Co. Ltd.
Hyundai is planning to invest $5 billion on another battery plant with SK On Co. in Georgia. Affiliate Hyundai Mobis Co. will make battery packs to supply EVs built at at Hyundai’s new plant 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,” said Youngsoo Kwon, CEO of LG Energy Solution.
Hyundai and Kia delivered around 119,000 EVs during the first quarter of 2023, down 2.2 percent from a year ago, according to SNE Research, a Seoul-based research firm.