Hyundai Motor Group and LG Energy Solution have recently announced their joint plan to invest an additional $2 billion in the ongoing development of electric vehicle (EV) batteries at their Georgia-based EV plant. This strategic move also includes the hiring of an extra 400 workers, further solidifying their commitment to the American market. The partnership between these South Korean giants initially took shape three months ago, with the goal of producing batteries at the same Georgia site, which is set to become operational for EV production in 2025. This latest announcement propels their total investment in the Georgia facility to an impressive $7.5 billion and augments the projected workforce to 8,500 employees.
Jose Muñoz, President and Global Chief Operating Officer of Hyundai Motor Company, emphasized their dedication to fostering a sustainable future led by American labor. This investment not only underscores their commitment to green technology but also underscores the belief in the potential of the U.S. EV market.
Hyundai’s initial commitment in 2022 was to invest $5.5 billion in establishing electric vehicle and battery assembly operations on a sprawling 2,900-acre site in Ellabell. While it remains uncertain whether this new investment signifies an increase in battery production, their joint venture previously outlined the supply of batteries for 300,000 EVs annually, aligning with the expected output of the adjacent vehicle assembly plant. Moreover, Hyundai has hinted at the possibility of expanding the Georgia plant to manufacture up to 500,000 vehicles per year in the future.
The arrival of Hyundai’s first dedicated EV manufacturing plant in the United States was hailed as a historic economic development milestone in Georgia. Since the initial announcement, suppliers have pledged approximately $2.2 billion in investments and the creation of 5,000 jobs. Georgia Governor Brian Kemp celebrated this new investment as a continuation of their efforts to establish the state as the e-mobility capital of the nation.
This commitment to the Georgia EV plant by Hyundai and LG Energy Solution will trigger additional incentives from both state and local governments, although the specifics will be disclosed at a later date. The existing incentive package includes substantial tax breaks and incentives, making it one of the most substantial subsidies ever promised to an automotive plant in the United States, according to Greg LeRoy, Executive Director of Good Jobs First.
These announcements are part of a broader trend of significant investments in EV and battery production across the United States. The U.S. Inflation Reduction Act mandates that EVs must be assembled in North America, with a portion of their battery components and minerals originating from North America or a U.S. free trade partner to qualify for a full $7,500 EV tax credit. Hyundai’s focus on building American factories aligns with these requirements as they expand their EV offerings beyond Ellabell, with electric vehicle assembly operations in Alabama and the upcoming assembly of the electric Kia EV9 large SUV in Georgia’s West Point plant. This strategic move positions Hyundai and LG Energy Solution at the forefront of the evolving American EV landscape.