Hyundai Motor Group and battery maker SK On were discussing forming a battery joint venture in the US, TheElec has learned.
The joint venture will run an electric vehicle (EV) battery manufacturing factory, likely in Alabama or Georgia, where the automaker already has automobile factories, sources said.
Georgia is also home to SK On’s battery factory in the US.
The pair will likely officially announce the plan during US President Joe Biden’s visit to South Korea, the sources said.
Biden is visiting South Korea on May 21 and is expected to meet the chairmen of local business groups Samsung, SK, Hyundai Motor and LG.
Hyundai Motor had already announced a battery-making joint venture with LG Energy Solution.
The automaker is planning to spend $3 billion on a new automobile factory in Alabama that will manufacture EVs and hybrid vehicles.
Hyundai Motor will begin manufacturing Santa Fe Hybrid in October there and Genesis GV70 in December, which means it will need to be able to procure more batteries locally in the US.
Hyundai Motor and SK On’s collaboration will be important for the latter as it will be its second automaker to form a joint venture with __ it is already planning one with Ford.
Rival LG Energy Solution already runs a joint venture with General Motors and had announced it also plans to form one with Stellantis.
SK On’s joint venture with Hyundai Motor is expected to manufacture long axis battery cells __ over 600mm in length __ for the automaker’s E-GMP platform.