Korean corporations LG and Hyundai are teaming as much as construct a brand new EV battery cell manufacturing plant within the US and have signed a memorandum of understanding to take a position $4.3 billion within the undertaking. The businesses will every maintain a stake of fifty p.c within the three way partnership, which can begin building on the brand new plant within the second half of 2023. Their new manufacturing facility will likely be positioned in Savannah, Georgia, the place Hyundai can also be constructing its first all-EV manufacturing unit within the US. The battery plant is predicted to be operational by 2025 on the earliest. After it begins manufacturing at full capability, will probably be capable of produce 30GHWh of battery yearly, which is sufficient to assist the manufacturing of 300,000 electrical automobiles.
LG and Hyundai are simply the most recent corporations to put money into US-based battery manufacturing amenities over the previous couple of years. Toyota introduced in 2021 that it’s going to construct a battery plant within the nation as a part of a $3.4 billion funding, whereas Ultium Cells (GM’s and LG’s three way partnership) secured a $2.5 billion mortgage from the Vitality Division for the development of EV battery amenities. Extra not too long ago, Ford introduced that it is spending $3.5 billion to construct a lithium iron phosphate battery plant in Michigan. Lithium iron phosphate, which may tolerate extra frequent and quicker charging, prices lower than different battery applied sciences and will deliver down the price of EVs.
Different corporations may comply with go well with, seeing because the Biden administration is pushing to deliver extra EV and battery manufacturing to the US. Final 12 months, it launched the American Battery Supplies Initiative, which can give 20 corporations $2.8 billion in grants in hopes of encouraging producers to begin battery manufacturing stateside and ensuring that the US will not be closely depending on “unreliable international provide chains.”
Hyundai and LG consider that the brand new facility may help create “a secure provide of batteries within the area” and permit them “to reply quick to the hovering EV demand within the US market.” Hyundai Mobis, the automaker’s elements and repair division, will likely be assembling battery packs utilizing cells manufactured within the plant. The automaker will then use these packs for Hyundai, Kia and Genesis electrical automobiles.