SK’s role in creating next-generation autos in the U.S. expanded last week as SK On and Hyundai Motor Group approved plans to set up a joint venture in Georgia to make battery cells for electric vehicles.
The joint venture plans to invest $5 billion to build an EV battery cell plant in Bartow County, Georgia. SK On and Hyundai Motor Group will each hold a 50 percent stake in the joint venture.
The new plant created by the two companies is expected to start manufacturing battery cells in the second half of 2025 with an annual production capacity of 35 GWh, enough to support the production of 300,000 EVs a year.
The future Bartow County plant in northwest Georgia is strategically located near Hyundai Motor Group’s existing and planned U.S. facilities. Hyundai Motor Group broke ground last year on the new Hyundai Motor Group Metaplant America in southeast Georgia to make future Hyundai, Genesis and Kia EVs.
The new site also adds to SK On’s existing presence in Georgia. In 2022, SK started production of EV batteries at its SK Battery America site in Commerce, Georgia. SK Battery America, a $2.6 billion investment, has an annual capacity of about 22 GWh, enough to support the production of more than 200,000 EVs a year.
The increased battery production comes as EVs continue to gain momentum in the U.S. and globally. EV sales in the U.S. increased by 70% in 2022 to reach nearly 800,000, according to the latest Global EV Outlook from the International Energy Agency.
The new investment also advances SK’s commitment to building businesses that reduce carbon emissions. Across its companies, SK has pledged to invest $85 billion in green businesses by 2030 and cut carbon emissions by 200 million tons in 2030.