Hyundai supercharging EV battery plans in Georgia to take on Tesla

Doing so requires a combination of advances in battery technology and bringing the battery factory and the neighboring EV assembly plant online as soon as possible. The project timeline calls for EV production to begin in January 2025 but Muñoz said Thursday the automaker expects to be making electric Hyundai, Kia and Genesis cars “sooner,” affirming a comment earlier this year by a state official that the plant could be operational as early as October 2024.

“Right now, Hyundai is limited on production capacity compared to some competitors. And we can only sell what we produce, right?” Muñoz said. “So, one way to enhance our business is to produce more vehicles. So, the sooner we start, the better for business.”

The Hyundai Metaplant along I-16 in Bryan County is Georgia’s largest economic development project. The projected value of Hyundai’s investment in the facility is now about $7.6 billion, and the automaker promises to employ 8,500 there by 2031.

Separately, Hyundai and another battery partner, SK On, are building a $5 billion battery production plant in Bartow County. Georgia and local governments, meanwhile, have invested billions in property tax breaks and other incentives to woo these factories here, meaning taxpayers also have a vested interest in their success.

Hyundai currently claims 4% of U.S. EV market share, far behind Tesla at 60%. But Hyundai recently leap-frogged over General Motors to claim the No. 2 spot, and automotive sector experts anticipate Hyundai and other legacy carmakers capturing larger shares as the demand for EVs grows.

In a recent “Car Wars” report, Bank of America analysts projected Tesla’s market share would fall to 18% by the end of 2026 and noted “Tesla’s dominance in this still nascent market segment may be coming to an end” before adding Tesla “will remain an important factor.”

Winning the battery battle

Increasing supply is only part of what’s behind the Hyundai Metaplant expansion plans. The automaker and battery factory partner LG Electric Solution will develop power cells that provide “more range, lighter weight” to differentiate their products from Tesla’s and others.

Currently, Hyundai’s IONIQ 6 EV gets 361 miles per charge, according to Environmental Protection Agency estimates. That’s slightly more than the similarly priced Tesla Model 3 Long Range at 358 miles and Tesla Model Y at 330 miles.

According to Muñoz, the technological enhancements at the battery factory announced Thursday will allow Hyundai to manufacture 30-gigawatt batteries, replacing the 20-gigawatt cells the automaker uses currently. The 50% more powerful batteries won’t translate to a commensurate increase in range, but the mileage improvements will be “significant,” he said.

Tesla officials did not respond to a request for comment prior to publication.

So-called “range anxiety” remains a major consideration with EV buyers fearful their cars will run out of juice short of their destinations, said Tim Lieuwen, executive director of Georgia Tech’s Strategic Energy Institute. Every EV manufacturer looks for an edge in the battery battle.

“Whether it’s an electric vehicle or insulating your attic or buying a more efficient furnace or putting in a solar farm, one of the commonalities is doing these things is more expensive upfront but can save you money in the longer term,” Lieuwen said. “Electricity is really cheap, especially compared to gas, so anything EV manufacturers can do to innovate on tech gives them an edge on gas-powered vehicles and then on each other.”

Shedding pounds

Hyundai officials declined to share specifics about their battery improvements beyond the 10-gigawatt capacity increase.

Lieuwen said simply producing a lighter-weight power cell will increase range. Today’s lithium-ion battery packs are heavy — 1,000 pounds or more — and powering weighty vehicles shortens charging life and range along with it.

Credit: Kia Motors

Credit: Kia Motors

Researchers are experimenting with ways to boost range to over 500 miles and shorten battery charging time to minutes or even seconds. Lieuwen pointed to innovations in manufacturing techniques, materials, and technology inside the battery as means to greater efficiency.

Savannah-area officials welcome Hyundai’s plans for better batteries. The manufacturing expansion announced Thursday includes the addition of 400 jobs. Carter Infinger, the top elected official in Bryan County, where the facility is being built, hailed the expansion.

“Construction is far from done, and the project is already exceeding all dreams and expectations,” he said.