Hyundai And LG Energy Join To Build US EV Battery Plant The Daily Financial Trends

Got a building your selling? Worried about Taxes? Free 1031 eBook

According to report by a local Asian news service, LG Energy Solution Ltd (LGES) and South Korea’s Hyundai Motor Co., are in talks to build two joint-venture electric vehicle battery plants in the United States.

According to the report, the proposals being discussed would entail building the plants in Georgia, Each plant would have an annual production capacity of roughly 35 gigawatt hours (GWh), which would be enough to power 1 million electric vehicles.

Neither LGES or Hyundai Motor Co. commented on the report when contacted by new outlets.

The report indicated the plants will likely be built near Hyundai Motor Group’s new Georgia electric vehicle manufacturing plant, which will aid the company in meeting the new US EV subsidy rules under the Inflation Reduction Act.

The recently passed Inflation Reduction Act mandates that starting next year, in order to qualify for US tax credits, a company’s EVs must be constructed with batteries, in which at least 40% (of the monetary value) of critical minerals are US-sourced or US-free-trade-partner-sourced. The share of critical minerals which must be US-sourced or sourced from a US trade partner will rise to 80% in 2027.

On Friday, a South Korean news outlet reported that Hyundai Motor Co., and the battery unit of energy group SK Innovation Co Ltd, SK On, will invest roughly 2.5 trillion won ($1.87 billion) to build another joint-venture manufacturing facility in Georgia.

These announcements come just a year after Hyundai Motor Group and LG Energy Solution announced they were combining to build a $1.1 billion EV battery together in Indonesia.

The Daily Financial Trends