Hyundai Motor Group and SK On to Establish EV Battery Cell Production Joint Venture in US

SEOUL, April 25, 2023 – Hyundai Motor Group (the Group) today announced its plans to set up an electric vehicle (EV) battery cell production joint venture in the US with partner SK On. 

The Group affiliates Hyundai Motor Company, Kia Corporation and Hyundai Mobis each approved the plan at their respective board meetings today. In November 2022, the Group signed a memorandum of understanding (MOU) with SK On to secure EV battery supply for North America.

The total investment amount for the joint venture is expected to be approximately USD 5 billion, with the Group and SK On each holding a 50 percent stake. 

Through the joint venture, both parties plan to establish an EV battery cell plant in Bartow County, Georgia, close to the Group’s U.S. production facilities, including Hyundai Motor Manufacturing Alabama, Kia Georgia and Hyundai Motor Group Metaplant America. 

The new plant is expected to start manufacturing battery cells in the second half of 2025 with an annual production capacity of 35 GWh, which is sufficient to support the production of 300,000 EVs. Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to the Group’s U.S. manufacturing facilities for production of Hyundai, Kia and Genesis EV models. 

The joint venture further accelerates the Group’s electrification efforts and bolsters its position as an EV leader in the U.S. market with a stable battery supply to support the production of highly competitive EV models. 

SK On has been a strategic partner for the Group and both have been working together on the production of globally renowned EV models, such as Hyundai IONIQ 5, Kia EV6 and Genesis GV60.