In a groundbreaking move, Hyundai Motor Group and LG Energy Solution have announced a staggering $2 billion increase in their joint venture investment in battery cell manufacturing in the state of Georgia. This exciting development was confirmed by Georgia’s governor, Brian Kemp, during a press release on Thursday.
This substantial infusion of capital catapults the total investment in the project to a colossal sum of over $4 billion. Governor Kemp expressed his enthusiasm for this major investment, emphasizing that it would have a profound positive impact on local communities. The benefits include the creation of well-paying jobs, improvements in the education system, infrastructure enhancements, and much more.
The primary focal point of this ambitious endeavor is the auto manufacturing plant nestled in Bryan County, Georgia. Scheduled to commence vehicle production in January 2025, the plant has ambitious plans to churn out an impressive annual output of 300,000 vehicles. The partnership between Hyundai and LG Energy Solution aims to infuse a grand total of $7.59 billion into this venture, simultaneously ushering in the creation of 8,500 new jobs over the next eight years.
A significant portion of this colossal investment is earmarked for the battery plant, boasting an impressive annual production capacity of 30 gigawatt hours (GWh). Additionally, an independent electric vehicle manufacturing plant is in the works, solidifying this ambitious project as a monumental and multifaceted undertaking.
Collectively known as the “Metaplant,” these two manufacturing facilities have garnered substantial incentives through the 2022 U.S. Inflation Reduction Act. This legislation, designed to promote domestic electric vehicle production, offers enticing $7,500 consumer tax credits. Furthermore, the act imposes stringent sourcing requirements for critical minerals and battery components while also providing substantial U.S. battery production tax credits.
To ensure seamless integration into Hyundai’s vehicle lineup, auto parts manufacturer Hyundai Mobis will assemble battery packs utilizing cells produced at the plant. These battery packs will then be supplied to Hyundai Motor’s manufacturing facilities in the United States, where they will play a pivotal role in the production of Hyundai, Kia, and Genesis electric vehicles.
Jose Munoz, the Chief Operating Officer of Hyundai globally, has previously stated that the Georgia plant possesses the potential to escalate its annual vehicle production to an astonishing 500,000 units, contingent upon market demand.
Notably, this is not the sole initiative undertaken by Hyundai Motor in the realm of electric vehicles. Earlier this year, the company cemented a separate $5 billion electric vehicle battery joint venture with SK On, a subsidiary of SK Innovation, in the United States. These developments underscore the automaker’s unwavering commitment to the electrification of its vehicle lineup, marking a pivotal shift toward a greener automotive future.
The strategic partnership between Hyundai Motor Group and LG Energy Solution, coupled with the supportive legislative landscape, bodes well for the expansion of electric vehicle manufacturing in the United States. This monumental investment is poised to not only reshape the automotive industry but also contribute significantly to the local economy and job market in Georgia. As we move closer to the envisioned production launch in 2025, all eyes will be on Bryan County, Georgia, as it becomes a focal point for cutting-edge electric vehicle technology and innovation.
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