This announcement further demonstrates the growing interest in electric vehicles, as well as the increasing partnerships between automakers and battery manufacturers. By partnering with South Korean firms, Hyundai Motor Group and General Motors are demonstrating their commitment to building reliable and sustainable batteries for electric cars. This is likely to help encourage other automakers to follow suit, and eventually create a market for electric cars that is significantly larger than what exists today.
Some car companies are investing in creating battery cells for use in electric cars. Hyundai and SK On have teamed up to create a $5 billion joint venture to produce battery cells, while GM has partnered with Samsung SDI to invest $3 billion into an EV battery plant. All of these companies hope that their investment will help encourage more people to switch to electric cars in the future.
A number of new partnerships have been announced recently between battery manufacturers and suppliers in an effort to gain a national advantage in the EV market. The partnerships come as EV battery competition heats up in the U.S., with automakers foreign and domestic racing to build battery supply chains nationally in order to be eligible for the Biden administration’s EV tax credit. New battery sourcing rules went into effect in April that restrict the full $7,500 tax credit to vehicles with battery materials procured and processed within the U.S. or by trade agreement partners
The South Korean automakers have argued that these regulations will cause job loss in the United States, and could even lead to a decrease in sales for the domestic car industry. Despite these objections, President Joe Biden indicated that he plans on pushing through with the new rules anyway.
Hyundai has signed a memorandum of understanding with SK On, a South Korean conglomerate, in order to invest in renewable energy. The two companies will hold a 50% stake in the $5 billion investment, which will be used to develop sustainable and affordable renewable energy sources. Hyundai plans to use this funding to help increase the adoption of renewables throughout South Korea and around the world.
Hyundai has announced that it will be establishing a battery cell plant in Bartow County, Georgia, which is close to Hyundai’s U.S. production facilities in Alabama and Georgia. The plant will start manufacturing battery cells in the second half of 2025 with annual production capacity of 35 GWh, which should support the production of 300,000 EVs. This decision could pave the way for Hyundai to become a major player in the electric vehicle market, as it would help to alleviate some of the concerns that have been plaguing Tesla over recent years.
Hyundai Mobis has been working with SK On to build the battery packs for their upcoming models, which will be made using cells from the company’s plant. This move is likely in an effort to replace batteries that have been sourced from companies such as Panasonic and LG Chem, both of whom are known for their low quality and reliability. The future looks very promising for Hyundai Mobis as they continue to diversify their product offerings and build a strong foundation for long-term success.
The GM-Samsung factory is a major win for the American automaker, as it brings its total battery cell capacity in the U.S. up to 160 GWh, potentially making it one of the largest manufacturers of lithium-ion cells in the world. The plant is expected to start production in 2026, and will create more than 2,000 jobs in predominantly rural Alabama.
GM’s decision to use prismatic and cylindrical battery cells for its new plant could mean that more electric vehicles will be built with these types of cells in the future. This type of Battery architecture allows for a high energy density, meaning that more batteries can be fitted into a vehicle without having a negative impact on ride quality or range.
