KIMTF - Hyundai Motor expands its US foothold with a $5 billion EV battery joint venture

2023-04-25 05:42:20 ET

To  boost electrification efforts in its largest market, Hyundai Motor ( OTCPK:HYMTF ) had finalised a $5B electric vehicle (EV) battery joint venture in the U.S., Reuters reported Tuesday.

Hyundai and its partner SK On, a battery company of SK Innovation Co Ltd, have announced the establishment of a new battery production factory in Georgia, formalising an earlier tentative arrangement.

The Hyundai-SK On Georgia factory is set to begin production of battery cells in the second half of 2025, with an annual capacity of 35 GWh, enough to facilitate the manufacture of 300,000 EVs.

The news came as South Korean President Yoon Suk Yeol arrived in Washington to meet with President Joe Biden on his first state visit to the United States in 12 years. Top executives from some of South Korea's largest corporations, including Hyundai Motor Group Executive Chair Euisun Chung, are accompanying Yoon on the trip.

The carmaker declared earlier today that its first-quarter net earnings of KRW3.3T more than doubled, beating forecasts.

Hyundai and Kia ( OTCPK:KIMTF ) also announced on Tuesday that they will invest a total of KRW1.05T to purchase more shares in autonomous mobility business 42dot Inc in order to maintain control and boost operational competitiveness.

Rivals General Motors Co ( GM ) and Samsung ( OTCPK:SSNLF ) likely to enter a joint venture to build an electric vehicle battery plant in the U.S.

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