Hyundai, LG to build $4.3 bln battery plant in US
STORY: Hyundai and LG Energy Solution say they plan to build a major electric vehicle battery plant in the U.S.
The South Korean giants announced the plan for a $4.3 billion site in Georgia state on Friday (May 26).
They want to take advantage of tax credits brought in by Washington's Inflation Reduction Act.
Under the legislation, manufacturers must stick to new U.S. sourcing requirements for EV battery components and critical minerals.
That if they want buyers of their vehicles to qualify for up to $7,500 of tax credits.
Vehicles from Hyundai are not currently eligible.
The automaker and LGES said construction of the factory will begin in the second of half of this year.
Battery production is due to start at the end of 2025 at the earliest.
The companies said it will make enough cells for 300,000 EVs per year.
Hyundai and LGES will each own half of the joint venture.
The battery maker supplies other automakers like U.S. giants Tesla and General Motors.
It's not the first major round of U.S. investment announced by Hyundai this year.
In April, the carmaker finalised a $5 billion EV battery joint venture with South Korea's SK On.
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