Hyundai Motor Co and fellow South Korean company SK On have agreed to invest approximately $2.5 trillion won ($1.88 billion) in the construction of a new joint venture battery factory in the United States. The two parties are expected to sign a memorandum of understanding next week.
Despite multiple reports that the companies have reached an agreement, an official at SK On stated that “Nothing has been decided on this matter” when questioned by the press, thereby indicating that further negotiations need to be undertaken before both parties will be willing to sign the memorandum.
According to multiple reports, Hyundai and SK On are targeting the State of Georgia for the location of the factory, putting it in close proximity to Hyundai Motor Group’s new EV plant. Construction of the facility is expected to get underway in the first quarter of 2026.
The plant is expected to have a capacity of about 20-gigawatt hours (GWh), thereby enabling it to power around 300,000 electric vehicles. Construction of Hyundai’s nearby EV plant in Georgia began last month, with the company aiming to begin commercial electric vehicle production in the first half of 2025 with an annual production of 300,000 units. SK On also possesses two battery facilities in Georgia.