Hyundai–SK On Battery Factory Worth 18.75 Billion Saudi Riyals
Hyundai has strengthened its presence in the U.S. electric vehicle market by opening a new battery plant in Bartow County, Georgia, with an investment of $5 billion, or about 18.75 billion Saudi riyals.
The plant is owned and operated through a 50-50 joint venture between Hyundai and SK On, and provides the company with locally produced batteries for vehicles like the Ioniq 5 and Ioniq 9, while reducing reliance on imported components.
This step comes at a time when competition is intensifying within the U.S. electric vehicle market, as Hyundai tries to narrow the gap with Tesla and strengthen its position against Chevrolet, Toyota, and Ford.
New Plant in Hyundai’s Electric Ecosystem
The plant is located in Bartow County, Georgia, and is considered one of the largest economic development projects to attract the state. The new facility is part of Hyundai’s growing ecosystem for electric vehicles in Georgia.
This ecosystem includes another battery plant being developed by Hyundai in partnership with LG Energy Solution, alongside a vehicle assembly facility known as Metaplant America.
The first models to benefit from the batteries produced at the new plant will be the Ioniq 5 and Ioniq 9, which are assembled at the Metaplant America facility.
Gradual Increase in Production Before Reaching Full Capacity
A spokesperson for the project told The Atlanta Journal-Constitution that the plant “is currently in the early stages of production and plans to gradually scale up its operations.” This indicates that the facility has not yet reached its full operational capacity.
Once fully operational, the plant is expected to reach an annual production capacity of 35 gigawatt-hours, providing Hyundai with a larger local source for the battery cells needed for its electric vehicles.
| Item | Details |
|---|---|
| Location | Bartow County, Georgia, United States |
| Investment Value | $5 billion, about 18.75 billion Saudi riyals |
| Partners | Hyundai and SK On in a 50/50 joint venture |
| Expected Production Capacity | 35 gigawatt-hours annually upon full operation |
| First Benefiting Models | Hyundai Ioniq 5 and Hyundai Ioniq 9 |
Hyundai Approaches Chevrolet in Electric Vehicle Sales
Despite Tesla remaining the leader in the U.S. electric vehicle market by a significant margin, competitors’ performance has started to improve. According to data from the second quarter of 2026, Chevrolet ranked second among electric brands with sales of 14,908 vehicles, compared to 14,274 vehicles for Hyundai, with a margin of only 634 vehicles.
The Ioniq 5 also made a strong showing during the same period, as it became the third best-selling electric vehicle in the United States, with 10,940 units sold.
| Model or Brand | Sales in Q2 2026 |
|---|---|
| Hyundai Ioniq 5 | 10,940 units |
| Toyota bZ | 7,524 units |
| Ford Mustang Mach-E | 7,032 units |
| Chevrolet Equinox EV | 6,660 units |
| Chevrolet Brand | 14,908 vehicles |
| Hyundai Brand | 14,274 vehicles |
Local Production Eases Import Pressures and Policies
Hyundai is betting on local battery and vehicle production in the United States to reduce its reliance on imports, especially amid political changes and tariffs that have made competition more challenging for several electric vehicle companies.
Hyundai has indeed been affected by these pressures, having halted the launch of the standard version of the Ioniq 6 manufactured in South Korea within its U.S. lineup while retaining the high-performance Ioniq 6 N.
In contrast, expanding local production could give the company greater flexibility in managing supply chains and support its ability to compete in a rapidly changing market impacted by tariffs, trade policies, and sources of components.
Hyundai’s Goal by 2030
Hyundai aims to locally produce more than 80% of the vehicles it sells in the United States by 2030. The SK On plant is one of the key elements in this initiative, alongside vehicle assembly facilities and other battery plants in Georgia.
The company’s investments coincide with growing competition in the market; reports indicate that sales of Toyota’s battery-electric vehicles rose by 136.3% in the first half of the year, indicating that Tesla’s dominance is no longer preventing other companies from expanding their presence.
Summary
The Hyundai and SK On plant in Georgia represents an industrial investment of 18.75 billion riyals aimed at supporting local battery production and accelerating the manufacturing of electric vehicles in the United States. With the Ioniq 5 and Ioniq 9 among the benefiting models, the project may help Hyundai get closer to Chevrolet in sales, and better prepare for competition with Tesla and other brands in the coming years.
