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Hyundai-LG EV battery project will cost $4.3 Billion

Hyundai-LG EV battery project will cost $4.3 Billion

As part of Hyundai’s new electric vehicle assembly factory in southeast Georgia, the company and LG Energy Solution said Thursday that they will invest $4.3 billion to construct an electric battery plant.

Both businesses will contribute to the joint venture, with manufacturing beginning by late 2025 at the earliest.

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According to a statement released by Hyundai Motor Co. CEO Jaehoon Chang, the battery plant would “create a strong foundation to lead the global EV transition,” with the goal of expediting the production of electric Hyundai and Kia vehicles in North America.

“Hyundai Motor Group is focusing on its electrification efforts to secure a leadership position in the global auto industry,” stated Chang.

The Ellabell, Georgia, facility, located about 20 miles west of Savannah, is where the South Korean manufacturer plans to invest $5.5 billion in 2022 to assemble electric vehicles and batteries. Vehicle production is scheduled to begin at the site with 8,100 workers in 2025.

A spokesman for Republican Governor Brian Kemp, Garrison Douglas, confirmed that the $4.3 billion investment and 3, 000 new employees at the battery plant are all part of the $5.5 billion plan.

The first estimated production of the adjacent vehicle assembly factory is 300,000 electric vehicles per year, which the Hyundai/LG plant is expected to be able to supply batteries for. Hyundai has stated that its Georgia plant has the potential to produce 500,000 vehicles per year.

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Georgia Becomes Center of Electric Vehicle Production

Georgia Governor Brian Kemp said in a statement that the project is “the latest milestone in Georgia’s path to becoming the EV capital of the nation” and that it is “exactly what we envisioned when Georgia landed the Hyundai Metaplant in May of last year.”

Auto suppliers have committed to investing over $2 billion and hiring 4,800 workers in the area around the Hyundai facility, in addition to the assembly and battery operations.

The news is part of a nationwide push to market for electric vehicles and associated battery technologies in the United States. To be eligible for the full $7,500 EV tax credit in the United States, electric vehicles must be assembled in North America and a minimum percentage of their battery parts and minerals must come from North America or a U.S. free trade partner.

There are currently no Hyundai or Kia models that qualify for the rebate.

“The IRA’s manufacturing incentives continue to bring jobs and investment to Georgia,” said Democratic U.S. Senator from Georgia Jon Ossoff in a statement. My ultimate objective is to make Georgia the undisputed leader in cutting-edge energy technology.

As an illustration of how federal incentives are enticing manufacturers, LG announced that this will be its eighth battery facility in operation or under development in the U.S.

Hyundai and Georgia are building another large electric battery facility. Hyundai and SK On, a unit of South Korea’s SK Group, announced in December that they would jointly invest $4 billion to $5 billion to build a plant northwest of Atlanta to supply electric batteries for Hyundai and Kia’s U.S. electric vehicles. After 2025, the Cartersville factory will employ 3,500 employees.

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What is the Hyundai-LG EV battery project?

The Hyundai-LG EV battery project is a joint venture between Hyundai Motor Company and LG Chem to build a battery manufacturing plant in Georgia. The plant will cost $4.3 billion and create 2,000 jobs.

What is the future of the Hyundai-LG EV battery project?

The Hyundai-LG EV battery project is still in its early stages, but it has the potential to be a major success. The project will create jobs, boost the economy, and reduce the reliance on imported batteries.

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