Hyundai, LG to Invest Another $2 billion in New U.S. Plant

Hyundai Motor Group and LG said they will increase their joint investment in a battery manufacturing plant in Georgia by up to $2 billion and create 400 new jobs. The factory, a joint venture between the two companies, now has a total investment of $4.3 billion and will eventually be able to produce about 300,000 electric vehicle batteries a year.

Hyundai, the world's third-largest automaker by car sales, said the two companies now plan to spend $7.59 billion to create 8,500 new jobs in Blaine County, Georgia, over eight years. The figure includes a battery factory with an annual capacity of 30 GWh, as well as a separate electric vehicle manufacturing plant. The car manufacturing plant is scheduled to begin producing cars in January 2025, with an annual output of 300,000 vehicles.

The two manufacturing plants, collectively known as "Metaplant," are being incentivized by a $7,500 excise tax credit from the U.S. Inflation Cutting Act of 2022, the bill requires electric vehicles to be built in the U.S. and sets new procurement requirements for critical minerals and batteries. The bill also includes a huge tax credit for local U.S. battery production.

Hyundai Mobis, an auto parts maker owned by Hyundai, will use batteries from the plant to assemble battery packs, which will then be supplied to Hyundai Motor's U.S. manufacturing plant for use in Hyundai, Kia and Genesis electric vehicles.

Georgia Governor Brian Kemp said the state has attracted several suppliers to support the facility. Last year, Hyundai Motor's global chief operating officer, Jose Munoz, said the Georgia plant could eventually produce 500,000 vehicles a year if demand is sufficient. Hyundai Motor said in April it had finalized a $5 billion joint venture for electric vehicle batteries in the United States with partner SK On.