South Korea-based Hyundai Motor and SK On intend to invest about KRW2.5tn ($1.88bn) to construct electric vehicle battery factory in the US, reported Reuters.
The two firms are expected to sign a memorandum of understanding this week, added the news agency, citing Korean Economic Daily.
SK On is the battery unit of energy group SK Innovation.
Production at the joint venture facility is expected to commence in the first quarter of 2026.
The facility is expected to have an initial annual production capacity of about 20GWh, sufficient to power about 300,000 electric vehicles.
In October, Hyundai Motor Group Metaplant America (HMGMA) broke ground on a new $5.54bn electric vehicle and battery manufacturing plant at Bryan County, Georgia, US.
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By GlobalDataHMGMA and its affiliate suppliers announced plans to construct the plant in May.
Over the next few years, HMGMA plans to generate more than 8,100 jobs as it intends to set up a steady supply chain for EV battery and other components in US.
The factory is anticipated to start commercial production in the first half of 2025, with an annual production capacity of 300,000 units.
This plant is part of Hyundai Motor Group’s electrification efforts to achieve a global target of selling 3.23 million completely electric vehicles annually by the end of this decade.
The yet to-built facility in Georgia will become an intelligent manufacturing plant, with all processes of production, right from order collection, procurement, logistics and production to be optimised leveraging artificial intelligence and data.
The facility will primarily depend on clean energy sources and use emission-reduction technologies.
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Image: The facility is expected to have an initial annual production capacity of about 20GWh, sufficient to power about 300,000 electric vehicles. Credit: Benjamin Marder from Pixabay.
