According to the report by Korea Economic Daily, Hyundai Motor Group will announce its plans to invest $5.3 billion in the United States to build electric vehicle (EV) battery plants in partnership with LG Energy Solution Ltd. and SK On Co.
The investment aims to take advantage of Washington's tax credits and expand its presence in the world's third-largest EV market.
The group, including Hyundai Motor Co. and Kia Corp., will invest KRW 4 trillion in a joint battery plant with LG Energy, the world's second-largest cell manufacturer.
The plant will produce 35 gigawatt hours (GWh) of batteries annually to power 400,000 electric vehicles.
The batteries will supply Hyundai's existing auto plant in Montgomery, Alabama, and Kia's in West Point, Georgia.
In addition, Hyundai Motor Group will invest KRW 3 trillion in a 25 GWh capacity plant with SK On, the world's fifth largest EV battery manufacturer.
The plant, expected to begin commercial operations in 2025, will provide cells for approximately 300,000 EVs.
The new facility will support the company's first dedicated EV facilities under construction in Savannah, Georgia.
These plans coincide with the U.S. government's decision to provide tax credits of up to $7,500 per EV assembled in North America. To qualify for additional subsidies, battery components must meet specific manufacturing and sourcing requirements.
Hyundai and Kia have set ambitious sales targets to sell more than 500,000 EVs in 2026 and one million units by 2030. The group is considering another joint plant with LG Energy to produce 30GWh of batteries annually to achieve these goals.
Hyundai Motor Group's board of directors will meet on April 25 to discuss these joint ventures, followed by separate meetings for SK On and LG Energy.
South Korean President Yoon Suk Yeol's visit to the U.S. next week for a summit with President Joe Biden is expected to coincide with the final investment decision.