Hyundai and LG Energy Solution have announced their plans to establish a joint-venture battery facility in Savannah, Georgia. The plant will have an annual capacity of 30 GWh, enough to supply 300,000 electric vehicles (EVs) per year. Hyundai and LGES will each own a 50 percent stake in the plant, with a total investment of $4.3 billion. The new battery plant will be located next to the $5.5 billion Meta Plant that Hyundai is building in Savannah, which will produce the Hyundai Ioniq 7 and the Kia EV9, among other vehicles based on the E-GMP platform.

Jaehoon Chang, President and CEO of Hyundai, said that the company is focusing on its electrification efforts to secure a leadership position in the global auto industry. He added that the establishment of a new EV battery cell plant with LG Energy Solution, a leading global battery producer and long-time partner, will create a strong foundation to lead the global EV transition.

The Hyundai Group has planned several battery production locations in Georgia, including a $5 billion battery production location in Bartow County, with another reportedly in the works. All aim to start producing batteries for automobiles in the second quarter of 2025 when the Meta Plant is ready to start producing vehicles.

The new battery facility is expected to help Hyundai and Kia EVs qualify for federal tax subsidies worth up to $7,500 for buyers of new electric vehicles. The subsidies are only available to purchasers of vehicles whose critical components were built and mined in America or one of its trading partners, which has pushed several automakers to invest in American manufacturing plants.

The groundbreaking ceremony for the new Savannah battery facility is expected to take place in the second half of this year.