Hyundai Motor Group announced today that it has signed a memorandum of understanding (MOU) with Korean battery manufacturer SK On to supply its electric vehicles with batteries in North America.
“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, the head of Hyundai’s EV division. “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.”
The memorandum of understanding outlines a strategic partnership between the companies, but Hyundai says that specific details for this plan will be released at a later date. It did, however, state that SK On’s batteries will be sent to Hyundai’s plants in the U.S. starting in 2025.
More: Hyundai Begins Work On $5.5 Billion U.S. Plant That Will Build EVs By Mid-2025
“We expect the cooperation between SK On and Hyundai Motor Group to create a big synergy,” said Choi Young-chan, SK On’s Chief Administrative Officer. “Both sides can hold a solid position in the process of electrification in the North American auto market.”
The preliminary agreement comes just weeks after Hyundai broke ground on a new $5.5 billion plant in Georgia that will start producing EVs in 2025. Once fully operational, it is expected to churn out 300,000 vehicles per year.
The new plant will build EVs for the entire Hyundai Motor Group, meaning that, in addition to making Hyundai-branded vehicles, it will also produce electric vehicles for Kia and Genesis. That mission will be assisted by AI and data-driven optimization across all parts of production, from logistics to procurement, and beyond.
Reports suggest, however, that this MOU is just the beginning. Sources speaking to Reuters said that, in addition to one battery plant being established with SK On, another two will be set up with LG Energy Solution, each with an annual output of 35 GWh, which would be enough for roughly 1 million vehicles.
