Hyundai is reportedly considering building a battery manufacturing facility with partner SK Innovation in Georgia, the third facility in the state.
Hyundai was in a rush to build electric vehicle manufacturing capacity in the United States. While the company has been planning this expansion, domestic production demands amid the latest U.S. tax incentives for electric vehicles have made their plans even more urgent. The company has previously announced that its electric vehicle manufacturing facility in Georgia will begin construction and production early. Now Hyundai is reportedly considering a joint venture with SK Innovation to produce battery cells nearby.
Corresponding Reuters, the $1.88 billion facility would produce 20 GWh of batteries annually, or enough capacity for 300,000 electric vehicles. If the joint venture bore fruit, it would start production in 2026, just after Hyundai’s vehicle manufacturing plant.
While neither SK Innovation nor Hyundai have confirmed the potential deal, its production would theoretically be necessary for Hyundai’s EV production. Additionally, it could be crucial in competing with Tesla, Ford, and General Motors.
The facility that would power the battery plant, Hyundai’s new EV facility in Georgia, is said to be one of the largest in the country. Hyundai executives have expressed that while the initial estimate was that the plant would be able to produce 300,000 vehicles annually, a Hyundai executive believes the plant could produce half a million units annually “if the demand is there”.
The second plant Hyundai has announced in Georgia will produce EV charging parts that will be built into vehicles and charging infrastructure. However, unlike the planned battery factory, this plant has been confirmed and will start construction and production next year in 2024.
Hyundai’s aggressive electrification in the United States is undoubtedly impressive and could be key to its future success. Hopefully, with its additional production capacity, the company can further reduce costs and ultimately offer EVs at multiple price points to a wide range of buyers.
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