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Hyundai's new $4 billion battery plant could slash prices for several of its most popular models: 'Another huge win'

The initiatives strive to accelerate EV adoption.

Hyundai-LGES announces $4.3B EV battery plant

Photo Credit: iStock

A joint venture between two major automotive brands is projected to create thousands of jobs while stabilizing the supply of batteries and satisfying the growing demand for electric vehicles (EVs) in North America.

In late May 2023, Hyundai Motor Group and LG Energy Solutions (LGES) announced they will partner to build a $4.3 billion state-of-the-art battery manufacturing plant in the U.S. Hyundai President and CEO Jaehoon Chang emphasized in a statement how this move aims to "create a strong foundation to lead the global EV transition" and said that with LGES "we are ready to drive the EV transition in America."

Adjacent to the Hyundai Motor Group Metaplant America near Savannah, Georgia, the facility expects to support the production of 300,000 EVs each year upon its projected completion in 2025, with the potential for future expansion. This will be Hyundai's second battery manufacturing plant in the state of Georgia and LGES's seventh in the U.S.

Incentives in the Inflation Reduction Act (IRA) continue to draw clean energy business to the U.S., with companies and consumers benefiting from access to tax credits, including those applying to clean energy-based vehicles. 

To make products eligible for the credits, manufacturers must meet specific sourcing requirements for EV battery components and complete the final assembly process in North America. 

Batteries from the new plant will supply U.S. manufacturing facilities producing new Hyundai, Kia, and Genesis EV models, which were ineligible for the IRA tax credits (as of mid-June). The initiatives strive to accelerate EV adoption, with the goal of EVs or plug-in hybrids contributing 50% of new vehicle sales in the U.S. by 2030 while reducing the nation's reliance on Chinese battery supply chains.

In addition to putting more clean energy vehicles on the road, the region could see up to 8,100 new jobs available between the Hyundai Metaplant and the new battery manufacturing facility. After leading a trade mission to South Korea, Senator Jon Ossoff said in a statement that "the IRA's manufacturing incentives continue to bring jobs and investment."

The senator, who represents Georgia in Congress, also praised the Hyundai-LGES announcement, according to The New York Times. 

"This is yet another huge win for Georgia," Ossoff said

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