Hyundai Motor Group has signed an agreement with SK On Co. Ltd. to secure a supply of electric vehicle batteries in North America.
The memorandum of understanding, signed in Korea, will provide SK On batteries to Hyundai Motor Group’s plants in the U.S. after 2025 for EV production.
The only Hyundai auto manufacturing plant is located in Montgomery. Hyundai is also the parent of Kia, which has an auto manufacturing plant in Georgia and just announced a new EV plant to be built in Savannah, Georgia.
SK On, which is also headquartered in Korea, currently operates its own EV battery factory in Georgia.
“Through the EV battery MOU, we will be able to further accelerate our efforts to secure EV leadership in the U.S. market,” said Heung-soo Kim, executive vice president and head of corporate future growth planning division and EV division of Hyundai Motor Group. “We expect the stable supply of EV batteries from SK On will also enable us to contribute to emissions reduction and meet climate goals in the U.S. market.”
SK On Chief Administrative Officer Choi Young-chan said, “We expect the cooperation between SK On and Hyundai Motor Group to create a big synergy. With the latest MOU, both sides can hold a solid position in the process of electrification in the North American auto market.”
Hyundai Mobis also recently announced a $205 million EV battery module plant to be built in Montgomery that will create 400 jobs. That plant will supply battery modules to the Hyundai Montgomery and the Kia auto plants beginning in 2024.
Earlier this year, Hyundai announced it would begin EV production in Montgomery — a $300 million investment that will also create 200 jobs. The all-electric Genesis GV70 luxury SUV and a hybrid electric version of the Santa Fe SUV.