Hyundai and LG Energy agreed to partner on a $4.3 billion plant near Savannah, Georgia, to make batteries for electric vehicles
The joint venture’s factory will be developed next to Hyundai’s $5.5 billion electric vehicle manufacturing facility that’s under construction in Ellabell, Georgia, about 27 miles west of Savannah. Hyundai had previously indicated that its Georgia vehicle plant would also make batteries but the company had not provided details of the arrangement before the two South Korean companies made the announcement Thursday.
Automakers and battery manufacturers are spending tens of billions of dollars to construct factories across the United States for the emergent electric vehicle industry. Many projects are located in the Southeast, including Rivian’s $5 billion plant under construction east of Atlanta, Toyota’s $5.6 billion factory in development near Greensboro, North Carolina, and Ford’s $11.6 billion worth of projects in Kentucky and Tennessee.
The Hyundai-LG joint venture expects construction for the Ellabell plant to begin in the second half of this year and production to start by the end of 2025.
Hyundai had previously announced that it will also develop a battery manufacturing plant near Cartersville, Georgia, valued at between $4 billion and $5 billion.