Hyundai and LG to Pour $2B into Georgia EV Battery Production

author: FutureCar Staff    

Hyundai Motor Group and LG Energy Solution have announced that they will invest an additional $2 billion and hire 400 more workers to produce batteries at Hyundai's upcoming electric vehicle plant in Georgia, USA. This partnership expands on their previous collaboration to manufacture batteries at the same site, where Hyundai plans to begin EV production in 2025. The total investment in the Georgia plant now exceeds $7.5 billion, with a planned workforce of 8,500 employees.

Jose Munoz, President and Global Chief Operating Officer of Hyundai Motor Company, expressed their commitment to creating a sustainable future powered by American workers through this investment. In 2022, Hyundai had already announced a $5.5 billion investment to assemble electric vehicles and batteries on a vast land in Ellabell, Georgia.

The additional investment and jobs do not mean an increase in battery production capacity. The plant will still supply enough batteries for 300,000 EVs per year, as initially planned. However, Hyundai remains optimistic about the potential for expansion in the future, depending on market conditions and demand. The Georgia plant is initially expected to produce 300,000 vehicles annually, with the possibility of expanding to 500,000.

Hyundai's decision to establish its first U.S. plant dedicated to EV manufacturing was considered a significant economic development project for Georgia. Suppliers have already committed to investing $2.2 billion and hiring 5,000 people in support of this venture. Georgia Governor Brian Kemp praised Hyundai and LG's additional investment, emphasizing their role in making Georgia the e-mobility capital of the nation.

The state and local governments will provide additional incentives for this project, although the details will be disclosed at a later date. So far, $1.8 billion in tax breaks and other perks have been promised. The new investment will enable Hyundai to claim more tax breaks, such as an additional $10 million in state income tax credits over five years. The governments may also allocate discretionary incentives for infrastructure aid and equipment subsidies.

This announcement is part of a larger trend of electric vehicle and battery investments across the United States. Under the U.S. Inflation Reduction Act, EVs must be assembled in North America, and a certain percentage of their battery parts and minerals must come from North America or a U.S. free trade partner to qualify for the full $7,500 EV tax credit. Hyundai, which is building American factories, supports the inclusion of foreign-made vehicles in the tax credit eligibility.

In addition to the Georgia plant, Hyundai is assembling electric vehicles at its plant in Alabama and plans to produce its electric Kia EV9 large SUV at the Kia plant in Georgia. The company's commitment to expanding its EV production capabilities underscores its dedication to the electric vehicle market.

FutureCar Staff