$5 Billion Battery Plant Officially Begins Production
Hyundai Motor and SK On’s joint venture, Hyundai-SK Battery Manufacturing America (HSBMA), announced on July 20 that its battery plant in Bartow County, Georgia, officially began commercial production earlier this month. The $5 billion facility has an annual production capacity of 35 GWh, enough to supply batteries for approximately 300,000 electric vehicles, marking a critical milestone in Hyundai’s North American EV strategy.
Hang Ki Moon, CEO of HSBMA, stated that the new plant will focus on enhancing operational efficiency, product quality, and safety standards to support the rapid growth of the North American electric vehicle market. The first batteries produced will be used for the seven-seat electric SUV IONIQ 9, manufactured at Hyundai’s Metaplant in Georgia. Sales of the IONIQ 9 have surged 380% year-over-year.
Investment Scale and Production Capacity
Hyundai Motor and SK On signed a joint venture agreement in April 2023, with each holding a 50% stake to construct the battery plant. The project is part of Hyundai’s $12.6 billion Metaplant America (HMGMA) initiative, the largest economic investment in Georgia’s history, announced in late 2022.
Since April 2025, SK On has been supplying batteries to Hyundai’s Metaplant from another facility in Commerce, Georgia. The new battery plant, located just tens of kilometers from the Metaplant, will further strengthen Hyundai’s localized production capabilities in North America. Hyundai Motor Group brands, including Hyundai, Kia, and Genesis, all plan to expand their EV production capacity in the North American market.
Competitive Landscape in the U.S. Electric Vehicle Market
According to Kelley Blue Book, Hyundai Motor (excluding Kia and Genesis) sold 26,936 all-electric vehicles in the U.S. during the first half of 2026, a 5.4% decline from the same period last year but still ranking as the third most popular EV brand in the country, behind only Tesla and Chevrolet. The sales drop was primarily due to the discontinuation of the standard IONIQ 6, which saw an 86% year-over-year decline in sales.
In comparison, Chevrolet sold 28,267 electric vehicles in the U.S. during the first half of 2026, just 1,331 more than Hyundai, but experienced a 40% year-over-year decline. Hyundai’s IONIQ 5 emerged as the third best-selling electric vehicle in the U.S. during the first half of 2026, trailing only the Tesla Model Y and Model 3. During a media event in April 2026, Hyundai stated that its electric vehicles are attracting a significant number of new customers, with the IONIQ 5 and IONIQ 9 achieving conquest rates of 69.8% and 64.3%, respectively—far higher than those of traditional gasoline or hybrid vehicles.
To boost sales, Hyundai recently launched a summer promotion offering 0% APR financing and up to $10,000 in discounts. The 2026 IONIQ 5 starts at $35,000, making it one of the most affordable electric vehicles in the U.S. market. Analysts suggest that with the new battery plant now operational, Hyundai’s competitiveness in the U.S. electric vehicle market will further improve, potentially narrowing the sales gap with Chevrolet.
Future Expansion Plans and Challenges
In April 2026, Hyundai partnered with LG Energy Solution to resume construction of another battery plant near Savannah, Georgia. The project had previously been delayed due to a law enforcement dispute but is now back on track, expected to further expand Hyundai’s battery supply capacity in North America. Hyundai Motor Group plans to introduce more electric vehicle models in the second half of 2025, including the high-performance IONIQ 6 N, to meet diverse consumer demands.
As competition in the electric vehicle market intensifies, Hyundai is leveraging localized production and supply chain optimization to reduce costs and enhance product competitiveness. The launch of the new battery plant will not only help Hyundai achieve its North American EV sales targets but also inject new momentum into the U.S. electric vehicle industry. Hyundai is expected to continue expanding its investments in Georgia, driving local employment and economic growth.
