| Korean giants Hyundai Motor Group and LG Energy Solution unveiled plans to build a $4.3B electric vehicle (EV) battery plant in the U.S. With an annual production capacity of 30 gigawatt-hours (GWh), the
plant will be capable of supplying enough batteries to power 300,000 EVs
every year. - The plant, a 50% joint venture, will be located in Savannah, Georgia, alongside Hyundai's existing all-electric vehicle factory.
- Construction is set to begin in the second half of 2023, with production starting sometime in 2025.
- In
2022, Hyundai announced a $5.5B investment to manufacture electric
vehicles and batteries in Ellabell, near Savannah, with production also
starting in 2025.
- The announcements contribute to a surge in electric vehicle and battery investments in the U.S., driven by the Inflation Reduction Act.
- Under
the law, EVs must be assembled in North America, and a certain share of
their battery parts and minerals must come from North America or a U.S.
free trade partner to qualify for the full $7,500 EV tax credit.
- Vehicles manufactured by Hyundai, as well as its Kia subsidiary, have not been eligible for the credits.
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