Hyundai Motor Group and LG Energy Solution are investing an additional $2 billion in their battery cell manufacturing joint venture in Georgia, the state’s governor, Brian Kemp, said Thursday.
The latest funds raise the total investment value to more than $4 billion.
"This major investment will strengthen communities through good-paying jobs, improve schools and infrastructure, and much more," Kemp said.
The auto manufacturing plant in Bryan County, Georgia, is scheduled to begin producing vehicles in January 2025, and will build 300,000 vehicles annually.
Hyundai said the two companies plan to spend a total of $7.59 billion, and create 8,500 new jobs over eight years.
That figure includes the battery plant, which has an annual production capacity of 30 gigawatt hours (GWh), as well as a separate electrical-vehicle manufacturing plant.
The two manufacturing facilities, known collectively as the "Metaplant," have been incentivized by $7,500 consumer tax credits in the 2022 U.S. Inflation Reduction Act, which requires electric vehicles to be manufactured in the U.S., and sets new sourcing requirements for critical minerals and battery components.
The law also includes hefty U.S. battery production tax credits.
Auto parts maker Hyundai Mobis will assemble battery packs using cells from the plant, then supply them to Hyundai Motor manufacturing facilities in the United States for production of Hyundai, Kia, and Genesis electric vehicles.
Hyundai global chief operating officer Jose Munoz said last year that the Georgia plant could eventually produce 500,000 vehicles annually if demand warrants.
CLICK HERE TO GET THE FOX BUSINESS APP
Hyundai Motor said earlier this year it had finalized a separate $5 billion electric vehicle battery joint venture in the U.S. with partner SK On, a battery unit of SK Innovation.
Reuters contributed to this report.
