Hyundai and SK On finalize $5B EV battery venture in U.S.

Hyundai Motor Co. announced Tuesday that the South Korean automaker has finalized a $5 billion electric vehicle (EV) battery joint venture in the U.S., boosting electrification efforts in the country.

Hyundai and partner SK On, a battery unit of SK Innovation Co Ltd (096770.KS), will set up a new battery manufacturing plant in the state of Georgia, the companies said, formalising an earlier provisional agreement.

The announcement was made as South Korean President Yoon Suk Yeol is in Washington to meet President Joe Biden on the first state visit to the U.S. by a South Korean leader in 12 years. Accompanying Yoon on the trip are top executives of some of South Korea's biggest companies, including Hyundai Motor Group Executive Chair Euisun Chung.

Hyundai also reported its first-quarter net profit had more than doubled, exceeding expectations. Its shares rose as much as 5% to a seven-month high after the announcements, and as the automaker also initiated steps to improve shareholder returns.

Hyundai and Kia also said on Tuesday they planned to invest a combined 1.05 trillion won to acquire more shares in autonomous mobility firm 42dot Inc to maintain control and increase its operational competitiveness.

By Michael Elkins | [email protected]

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