New battery factory coming to Georgia, courtesy of South Korea

Following in the wake of other manufacturers, South Korean companies Hyundai and SK On have officiated plans to construct a new EV battery plant in Georgia in 2025.

The announcements follows a surge in battery facility construction as a result of the Biden administration’s Inflation Reduction Act. Passed earlier this year, the bill provides generous tax credits to EV suppliers and producers, with the caveat that manufacturing must take place on U.S. soil for the benefits to apply.

Companies and politicians from the Europe, Japan and South Korea were quick to denounce the policy, arguing that it was hostile to international trade. However, the controversy has not stopped global competitors such as BMW, VinFast and Honda from announcing new EV facilities in the U.S., with aims to produce batteries and cars domestically in the coming years. The incentives also seemed to influence some American automakers to announce plans to fully phase out the internal combustion engine much earlier than originally predicted, despite global hesitation.

Both SK On, a subsidiary of tech company SK Innovation, and Hyundai already have sites in Georgia for their individual interests, however the new factory will manufacture batteries for the automaker’s current and upcoming EV lineup, which includes 17 new models within the next decade. While final details have yet to be revealed, the companies expect to spend roughly $5 billion on the facility.

EVs currently account for a minuscule percentage of the car market. However, automakers are spending billions to induce widespread EV adoption across the globe. Sales of zero-emission vehicles have risen drastically over the last year, and as infrastructure and technology improves consumer interest is more likely to rise.

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