South Korean car manufacturer Hyundai has announced it will join a US-based joint venture to produce electric vehicle (EV) batteries.
The $5bn venture sees the firm enter an equal partnership with the battery subdivision of South Korea’s SK Innovation Co. The plant, planned for the state of Georgia, will likely feed Hyundai’s under-construction EV manufacturing plant in the same state. The plant, which will house a productive capacity of 35GWh, will open for production in late 2025.
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The combination battery and EV plant constructions will facilitate efficiency in the supposed 300,000 EVs Hyundai believe it can produce from the two locations. It will allow Hyundai to profit from the US Inflation Reduction Act’s (IRA’s) tax credit scheme
The US battery race
Hyundai finalised the move days after the US announced more stringent requirements for EVs to qualify for IRA tax credits. Under the updated act, 40% of the mineral makeup and critical components of an EV battery must come from the US or a close trade partner to qualify for credits.
This target will rise year-on-year until 2027, when it hits 80%. Additionally, the Environmental Protection Agency (EPA) are increasing their own targets too. It was revealed that the EPA will require 67% of vehicles sold in the US to be EVs.
On the same day, electronics giant Samsung’s battery manufacturing division will partner with US car manufacturer General Motors (GM) to construct a similar battery plant in the US. Executive vice president of GM Doug Parks stated: “The introduction of new cell form factors will allow us to expand into even more segments more quickly and integrate cells directly into battery packs to reduce weight, complexity and costs. With multiple strong cell partners, we can scale our EV business faster than we could going it alone.”
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By GlobalDataIt marks a trend that includes British battery manufacturer AMTE. The firm stated that it was considering changing the location for their proposed gigafactory from Scotland, UK, to the US.
