HMG and LGES sign memorandum to produce BEV batteries in the U.S.

Signers of BEV memorandum – Photo Source/Copyright: Kia Media

In case there was any lingering skepticism, the 2020 semiconductor chip scarcity continues to have an impact on cars worldwide. It initially resulted in collecting funding and forging agreements to obtain their own private stock of chips, which then prompted manufacturers to build facilities for the various electric components, such as the batteries that go into battery-electric vehicles (BEVs). Some see the construction of a new BEV battery cell manufacturing facility in the United States by the Hyundai Motor Group (HMG), the parent company of Kia Corp, as part of a global initiative to increase its stake in North America. This would not be the first time Kia has found a home in the United States thanks to a joint venture between HMG and LG Energy Solution (LGES).

The first of the two manufacturers to establish an auto assembly facility in Georgia was the Kia Corporation. accountable for the K5 midsize sedan, Telluride SUV, Sorento SUV, and Sportage SUV's assembly and manufacture. The achievement finally gave rise to another path – BEV batteries – with an annual capacity of more than 340,000 vehicles. Consider all that is put into a BEV today. A completely electric powertrain requires automakers to invest in their research and development (R&D) division to develop new and more efficient engineering mechanics. BEV battery construction, the engine that drives it all, is then followed by the many other parts that give it its power.

The "Hyundai Motor Group Metaplant America" (HMGMA) is a new Metaplant by HMG that will be built and begin producing BEV batteries by 2025. In order to establish a solid supply chain for BEV batteries and parts in the U.S. market, Kia had to invest in many other areas. For HMG and Kia, this will be the state of Georgia's first specifically dedicated U.S. EV and battery manufacturing facility. The Metaplant aims to produce 300,000 units annually, with commercial production beginning in 2023 and operations beginning in 2023. Over the following few years, this target will increase.

Kia has a lot on its plate with ambitions to introduce at least two BEV cars annually between now and 2027. At the 2023 Chinese EV Day, the Kia EV6, Kia EV9, and rumors of the Kia EV5 Concept were all on display. The EV6 is expected to be the star of 2022, so it shouldn't come as a surprise that the EV5 will be the second BEV Kia releases this year. We’re almost halfway through the year. The automaker can't wait till the HMG Metaplant opens in 2025 since achieving that kind of objective requires a lot of resources. This necessitates a higher volume of BEV batteries being produced each year, which is why HMG and LGES agreed to a Memorandum of Understanding to build BEV batteries in the United States.

"Two strong leaders in the auto and battery industries have joined hands, and together we are ready to drive the EV transition in America…By further advancing our product competitiveness and global operational expertise, LG Energy Solution will commit our best efforts to offering the ultimate sustainable energy solutions to our customers." – Youngsoo Kwon, CEO of LG Energy Solution

The new joint venture's yearly production capacity target is 30 GWh, just like the HMG Metaplant. This will enable the yearly manufacturing of 300,000 BEV models. Later this year (2023), construction will begin, and in 2025, it will begin producing batteries alongside the Metaplant. A straightforward supply chain looks like this: A steady supply of batteries in the area enables HMG and Kia to meet the rising demand for BEVs in the U.S. market. Hyundai Mobis assembles the battery packs using cells from the plant, which are then shipped to the new HMG U.S. manufacturing facilities in charge of producing Hyundai, Kia, and Genesis EV models.

Want to stay up to date with what HMG and the Kia Corp are working on? Follow along with us on Miami Lakes Automall social media. Check out the Kia EV6 and Kia EV9 at Miami Lakes Automall.

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Terry is an avid Nascar fan who grew up attending races at Charlotte Motor Speedway in Concord, North Carolina, just down the road from his hometown of China Grove, NC. Terry currently resides in Wellington and has been writing for 15 years. He also enjoys watching the Road Runner Looney Tunes cartoon with his two sons in his spare time.