Shares rise as much as 5 to 7month high
To develop Georgia battery plant in joint venture with SK On
Plant to start production in H2 2025, support 300,000 EVs

SEOUL, April 25 Reuters South Korea39;s Hyundai Motor Co said on Tuesday it had finalised a 5 billion electric vehicle EV battery joint venture in the U.S., boosting electrification efforts in its largest market.

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

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

The move follows new U.S. sourcing requirements for EV battery components and critical minerals in order for car buyers to qualify for up to 7,500 in credits under the Biden administration39;s Inflation Reduction Act IRA. Cars made by Hyundai and sister company Kia Corp are currently not eligible for the tax credits.

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 Korea39;s biggest companies, including Hyundai Motor Group Executive Chair Euisun Chung….