Hyundai and SK Plan $1.5 Billion Boost for Georgia Battery Plant Amid Tariffs

2025-04-02 investment

Georgia, USA, Wednesday, 2 April 2025.
Hyundai and SK On seek a hefty loan for a Georgia plant as Trump’s tariffs tighten. This could mean a big leap in EV battery production, boosting 300,000 EVs annually. A strategic win for tech enthusiasts.

Strategic Timing Amid Trade Tensions

I’m tracking a significant development in the EV industry today. Hyundai Motor and SK On are making a bold move, seeking a $1.5 billion loan for their joint battery venture in Georgia [1]. The timing is particularly crucial as it coincides with U.S. President Donald Trump’s implementation of a 25% tariff on all car imports, which took effect today [2]. The joint venture appears strategically positioned, as Hyundai recently demonstrated its commitment to U.S. manufacturing with the opening of its $12.6 billion Metaplant in Georgia [3].

Production Capacity and Economic Impact

The numbers here are impressive - the Bartow County battery facility will produce 35 gigawatt-hours of batteries annually, sufficient to power 300,000 electric vehicles [1]. This facility complements Hyundai’s broader U.S. expansion, which includes plans to increase production capacity to 1.2 million vehicles annually between 2025 and 2028 [4]. What’s particularly exciting is the economic ripple effect - the Korean government is actively supporting this initiative through the Korea Trade Insurance Corporation (K-sure), which has agreed to provide the necessary collateral for the loan [1].

Future Implications

The facility’s completion is expected by the end of 2025 [1], aligning with Hyundai’s ambitious $21 billion U.S. investment plan from 2025 to 2028 [4]. This isn’t just about batteries - it’s part of a larger ecosystem that includes the recently opened Hyundai Motor Group Metaplant America, which received $2.3 billion in export finance support from K-sure [1]. The timing is crucial, as Korean business leaders are actively working to navigate the challenges posed by new U.S. trade policies [2].

Bronnen

Battery plant Hyundai