The LG deal follows a similar supply agreement that Hyundai inked with South Korean battery supplier SK On Co. for a $5 billion battery plant in Bartow County, Ga. That plant will have an annual production capacity of 35 GWh and is expected to mainly supply Hyundai. Motor Group auto plants in West Point, Ga., and Montgomery, Ala. Construction of the LG joint venture plant will begin this year, with production scheduled for late 2025.
A key component, such as diversification for vehicle batteries, is about suppliers, creating redundancy and obtaining batteries with different form factors and chemistry.
“Having options means OEMs can design and market EVs with varying performance levels, range and price,” said Conrad Leeson, senior analyst at AutoForecast Solutions. “Most importantly, diversifying the battery supplier base relieves OEMs of being dependent on issues with a single battery supplier.”
The new Hyundai assembly plant, located outside Savannah, Ga., will build six electric models and open in early 2025. The 2,800-acre project will have an initial production capacity of 300,000 EVs annually. However, depending on demand, this total could rise to 500,000.
The passage of the Inflation Reduction Act, which encouraged North American EV and battery manufacturing, has opened the floodgates of investment. Since the law passed in August, automakers and suppliers have announced more than $11 billion in EV battery investments.
Hyundai has pledged $16 billion globally for EVs by 2030 and aims to sell 3.23 million battery-powered vehicles globally by then.
Hyundai and Kia delivered about 119,000 EVs during the first quarter of 2023, down 2.2 percent from a year earlier, according to Seoul-based research firm SNE Research.
Carly Schaffner contributed to this report.
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This news is auto-generated through an RSS feed. We don’t have any command over it. News source: Multiple Agencies: Autocar India, hindustantimes, economic times, autonews
