Hyundai and LG announce $4.3 billion plant in Georgia

SEOUL

Hyundai Motor Group and LG Energy Solution have announced they will build a $4.3 billion electric battery plant as part of Hyundai’s new electric vehicle assembly plant in southeast Georgia.

The companies will split the investment, starting production as soon as late 2025.

Hyundai Motor Co. CEO Jaehoon Chang said in a statement that the battery plant would “create a strong foundation to lead the global EV transition,” explaining the company wants to speed up efforts to produce electrified Hyundai and Kia vehicles in North America.

The South Korean automaker said in 2022 it would invest $5.5 billion to assemble electric vehicles and batteries in Ellabell, just west of Savannah.

The site is supposed to have 8,100 employees and is
slated to begin producing vehicles in 2025.

The Hyundai/LG plant is supposed to be able to supply batteries for 300,000 electric vehicles per year, which is the initial projected production of the adjoining vehicle assembly plant.

Hyundai has said the Georgia plant could later expand to build 500,000 vehicles annually.

In addition to the assembly and battery plants, auto parts suppliers have pledged to invest more than $2 billion and hire 4,800 people in the region around the Hyundai site.

The announcements are part of an electric vehicle and battery land rush across the United States.

Under the U.S. Inflation Reduction Act, EVs must be assembled in North America, and a certain percentage of their battery parts and minerals must come from North America or a U.S. free trade partner to qualify for a full $7,500 EV tax credit.

Currently, no Hyundai or Kia vehicles are eligible for the tax credit.