In a strategic move that signals Hyundai’s aggressive push into the electric vehicle market, the Korean automaker has revealed an all-inclusive battery strategy that spans production, chemistry diversification, and sustainability initiatives. The cornerstone of this strategy is Hyundai’s joint venture with SK On to establish a U.S.-based battery production facility capable of 35 GWh annual capacity—enough to power approximately 300,000 electric vehicles. This partnership builds upon an existing relationship that has already produced batteries for the IONIQ 5, Kia EV6, and Genesis GV60.
Hyundai’s $5.54 billion investment in battery infrastructure represents more than just manufacturing expansion; it’s a deliberate move toward supply chain autonomy. The company is systematically reducing dependency on external suppliers while creating a localized production ecosystem where Hyundai Mobis will assemble battery packs using cells from the joint venture. The new manufacturing facility in Bartow County will become an integral part of Georgia’s growing EV ecosystem. The 50 percent stake held by each partner in this venture ensures equal contribution and shared benefits in this ambitious project. This vertical integration could notably lower costs while ensuring consistent quality control.
Vertical integration isn’t just smart business—it’s Hyundai’s blueprint for EV affordability and quality assurance.
Perhaps most innovative is Hyundai’s dual-chemistry approach. The automaker is developing cost-efficient lithium iron phosphate (LFP) batteries through a streamlined production process that eliminates traditional precursor steps. Hyundai Steel will contribute high-grade iron powder derived from recycled steel, while EcoPro BM will synthesize cathode materials directly. These LFP batteries promise exceptional longevity with potential million-mile lifecycles similar to advancements seen in competing technologies.
Meanwhile, premium models will continue using nickel-cobalt-manganese (NCM) and NCMA pouch-type batteries for superior energy density and performance attributes. The company isn’t stopping at external partnerships. By 2027, Hyundai plans to internalize ternary battery production, particularly NCM chemistry. This bold move will allow for tailored battery designs specifically engineered for Hyundai’s EV platforms—a competitive advantage few automakers currently possess.
The sustainability dimension shouldn’t be overlooked. Hyundai’s battery recycling initiatives will create a circular supply chain where materials from spent batteries find new life in fresh cathodes. This approach, coupled with Hyundai Steel’s recycled iron powder program, greatly reduces the ecological footprint of battery production—a vital consideration as EVs scale globally.
If executed properly, Hyundai’s all-encompassing battery strategy could indeed revolutionize electric mobility for decades to come.
