Hyundai and SK On recently released more information on its battery cell production facility in the United States. The South Korean companies invested $5 billion in Bartow Country, Georgia, to build the EV battery plant.
Each company is taking a 50% stake in the Georgia battery facility. Construction on the EV cell plant is expected to start in the second half of 2025. The facility’s initial target is to produce 35 GWh of battery cells annually, enough to make 300,000 electric vehicles.
Hyundai will use the cells to produce Hyundai, Kia, and Genesis EV models within the United States. The IONIQ 5 and IONIQ 6 fall under Hyundai’s EV offerings, which have gained some popularity in specific markets. The Niro EV and EV6 are two of Kia’s battery electric vehicle (BEV) offerings. Meanwhile, Genesis offers an electrified GV70, an all-electric G80, and the GV60 SUV.
Hyundai and SK On’s battery cell production facility would qualify its electric vehicles for some of the Inflation Reduction Act (IRA) EV tax incentives. Earlier this month, the US Treasury’s guidance on battery components for tax incentives took effect, pushing EV makers to invest in the United States for battery production. Besides Hyundai, Volkswagen, Honda, and other foreign automakers have announced the construction of battery plants within the United States or North America.
In November 2022, Hyundai and SK On signed a memorandum of understanding (MOU) to secure its EV battery supply in North America. The battery facility in Bartow County, Georgia, is expected to create 3,500 new jobs, plus an additional 22,700 jobs related to electric vehicles.