General Motors and Hyundai are entering strategic partnerships under separate ventures alongside South Korean companies that would center on developing electric vehicle batteries to power their vehicles. The separate ventures would center on establishing new plants in the country, with massive plans for the future of electric mobility.
This move centers on the new rules imposed by the US that would only grant the full $7,500 EV tax credits for batteries manufactured in the country, sourcing parts locally as well.
GM Announce Partnership with Samsung SDI for Battery Plant
General Motors (GM) has announced a groundbreaking partnership with Samsung SDI, a leading global battery manufacturer, to collaborate on the production of electric vehicle (EV) batteries. This collaboration is set to accelerate GM's ambitious plans for electrification and expand Samsung SDI's presence in the EV battery market.
As part of the partnership, GM and Samsung SDI will jointly invest $3 billion in developing and producing advanced battery technologies for EVs.
The funds will be used to establish new battery manufacturing facilities and research and development centers, to bring the first batch of locally-produced batteries to market by 2026.
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Hyundai's Georgia Battery Plant with SK On
In another major development, Hyundai has announced a strategic partnership with SK On, a leading South Korean energy company, to build an electric vehicle battery manufacturing plant in Georgia. This partnership marks a significant step for Hyundai in securing a local battery supply chain for its rapidly growing EV business in the US.
The joint venture between Hyundai and SK On will see an investment of over $5 billion, with the Hyundai Motor Group and the South Korean energy company each taking on a 50 percent stake.
The facility is expected to produce 35 GWh of EV battery cells annually, which the company claims to yield as many as 300,000 all-electric vehicles.
The EV Development in the US
The US government has made it clear to manufacturers that the EV tax credit program will prioritize vehicles with locally-manufactured batteries. The tax credit, which offers incentives to buyers of electric vehicles, will now be linked to the use of domestically-produced batteries to boost domestic battery manufacturing and reduce reliance on imported batteries.
Still, the new battery guidelines need work to enforce its rules and regulations for the EV tax credit program, with reports saying it will still be lost in 2023 as it sees delays.
Additionally, some reports that imported electric cars would also qualify for the EV tax credit program, but there will be certain terms for this, particularly via commercial lease.
What is being pushed now is the future of the updated tax credit program that will give EV buyers higher incentives if the battery in their vehicle is manufactured in the United States. This move is aimed at encouraging automakers to invest in local battery production, with GM and Hyundai's ventures looking to establish new factories to make it.
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