Hyundai Motor Group has received clearance from the board of directors of its three car brands to invest $5 billion in a US gigafactory with SK On, Kallanish reports.

The South Korean firms signed an MOU for a 35-gigawatt-hour plant in Bartow County, Georgia, last November. The approval from bosses at affiliates Hyundai Motor, Kia Corporation and Hyundai Mobis came in this week.

Under the 50-50 JV, the carmaker group and SK On will produce enough battery cells to power 300,000 EVs per year. The cells will be assembled into battery packs by Hyundai Mobis, and later supplied to Hyundai, Kia and Genesis models.

SK On batteries are already deployed on globally renowned BEV models such as the Hyundai IONIQ 5, Kia EV6 and Genesis GV60.

Production at the new facility is planned to start in the second half of 2025, coinciding with the start of production at the group’s $5.5 billion EV factory near Savannah, Georgia.

The carmaker said the JV further accelerates the group’s electrification efforts and bolsters its position as an “EV leader” in the US market, enjoying from a stable battery supply to support highly competitive EV models.