Daily Management Review

Hyundai and LG to build large $4.3bn battery plant in US


Two South Korean companies, LG Energy Solution and Hyundai Motor Group, will construct an electric vehicle battery plant in the US. Each business will own a 50% stake in the joint venture, which they will fund with $4.3 billion.

Swapnil EP
Swapnil EP
The factory will be located in Georgia. Construction will start at the end of this year and should be finished no later than the end of 2025. The plant will be able to generate 30 GWh worth of batteries for 300,000 electric vehicles annually.

The factory will be situated close to the Kia, Hyundai, and Genesis electric car factories that are now being built. Hyundai and SK On, another South Korean business, revealed plans to develop a new battery production in the region in December. In Ohio, a comparable facility is also being built by LG Energy Solutions and Honda.

The US government introduced a set of initiatives in April to encourage the use of cleaner modes of transportation. Two-thirds of newly sold autos should have electric motors by 2032. The US government will mandate that a specific percentage of all cars be produced as electric vehicles and will offer tax incentives to encourage consumers to purchase them.

source: cnn.com