Hyundai Motor Group, LG Power to construct $4.3 billion EV battery plant in US

South Korea’s Hyundai Motor Group and LG Power Answer Ltd on Friday stated they’ll construct a $4.3 billion electrical car (EV) battery plant in the US amid a push to reap the benefits of tax credit.

Producers should adhere to new US sourcing necessities for EV battery elements and demanding minerals in order that consumers of their automobiles can qualify for as much as $7,500 in tax credit underneath the Inflation Discount Act (IRA).

Autos from Hyundai Motor Co and sister automaker Kia Corp are presently not eligible.

Hyundai and LGES stated development of the manufacturing facility within the state of Georgia will start within the second half of 2023, with battery manufacturing beginning on the finish of 2025 on the earliest.

It’s going to have an annual manufacturing capability of 30 gigawatt-hours (GWh), sufficient for 300,000 EVs, they stated.

Hyundai Motor Group, the world’s third-largest automaker by car gross sales, is constructing EV and battery manufacturing amenities in Bryan County within the state, the place its joint manufacturing facility with LGES will probably be based mostly.

LGES and Hyundai Motor Group, which homes Hyundai Motor, Kia and autoparts maker Hyundai Mobis Co Ltd, will every personal 50% of the three way partnership.

LGES provides automakers together with Tesla

(TSLA) and Basic Motors.

“Two sturdy leaders within the auto and battery industries have joined arms, and collectively we’re able to drive the EV transition in America,” LGES CEO Youngsoo Kwon stated in an announcement.

In April, Hyundai Motor finalized a $5 billion EV battery three way partnership in the US with SK On, a battery unit of SK Innovation Co Ltd, boosting electrification efforts in its largest market.