In order to supply batteries for its dedicated electric vehicle (EV) facility in the United States, Hyundai Motor Group announced on Tuesday that it has struck a preliminary agreement with automotive battery manufacturer SK On. A memorandum of understanding for the supply of batteries and future business opportunities in the American EV sector has been signed by the two South Korean businesses.
Hyundai, SK On sign agreement for EV battery partnership in US
In order to acquire batteries for its dedicated electric vehicle (EV) facility in the United States, Hyundai Motor Group announced that it has signed a preliminary agreement with automotive battery manufacturer SK On. According to a statement from Hyundai Motor Group, the two South Korean businesses have struck an agreement regarding the supply of batteries and potential future commercial ventures in the American EV market.
According to the “strategic partnership,” SK On intends to start supplying its batteries in 2025 for EVs that will be produced at the Hyundai Motor Group Metaplant America (HMGMA) in Georgia. According to Hyundai, the volume and timing of battery shipments are just two examples of the specifics that will be discussed later.
In order to strengthen its push toward electrification in the largest auto market in the world, Hyundai Motor Group declared in May that it will invest $5.54 billion to create the HMGMA. The 300,000-unit-per-year EV facility will really begin building in the first half of next year, according to the firm, with manufacturing expected to commence in the first half of 2025.
The factory will make electric vehicles for Hyundai Motor, including those for its luxury brand Genesis, as well as other vehicles for its smaller subsidiary Kia. In Alabama and Georgia, respectively, the new US plant will be close to already-existing Hyundai and Kia facilities. In 2030, Hyundai Motor and Kia, the world’s fifth-largest automaker, plan to sell a combined 3.23 million electric vehicles, including 840,000 in the United States, accounting for 12 percent of the worldwide EV market. Their share was 5% the previous year.
The company stated that it may begin making the Genesis GV70 SUV in an all-electric form at the Alabama factory later this year, while the Hyundai IONIQ 5 and the Kia EV6 will be made at the respective automakers’ domestic factories for export. Six Genesis vehicles are among the 17 EV models that Hyundai Motor expects to introduce by 2030. Kia is expected to introduce 14 EV models by 2027.
According to SK On, the most recent MOU would improve their relationship with Hyundai Motor Group. It provides the IONIQ 5 and IONIQ 6 all-electric vehicles from Hyundai Motor with batteries. SK On presently runs seven battery plants, including three in China, two in Hungary, one each in South Korea, the United States, and Hungary. In January, a new US facility is expected to open.