Hyundai Motor, Matrix Renewables in solar deal to power Georgia EV plant

South Korea’s top automaker Hyundai Motor Group said on Monday it has signed a 15-year power purchase contract with a US solar energy generation project led by Spain’s Matrix Renewables to power its electric vehicle plant under construction in Georgia.

Under the power purchase agreement (PPA), Hyundai will receive 147-megawatt energy from the Stillhouse Solar Project, which the Spanish renewable energy firm plans to put into commercial operation by October 2025 in Bell County, Texas.

The power purchase from 2025 through 2040 will account for 70% of the project’s 210 MW solar energy generation capacity. Hyundai is expected to secure 378 gigawatt hours of solar energy annually.

The deal marks the biggest PPA signed by a Korean company for the use of renewable energy in the US, according to Hyundai.

Financial terms of the deal weren’t disclosed.

METAPLANT AMERICA, HYUNDAI’S FIRST DEDICATED EV PLANT

The solar energy supplied by the Stillhouse Solar Project will be used to operate Hyundai Motor Group Metaplant America LLC (HMGMA), the Korean automaker’s first dedicated EV production plant under construction in Bryan County, west of Savannah.

Hyundai Motor Co. broke ground on the $5.54 billion plant in October 2022 to enhance its presence in the world’s second-largest EV market.

The new factory, located near Hyundai’s existing plant in Alabama and affiliate Kia Corp.’s Georgia plant, is slated to begin operations this October, starting with the production of the Hyundai IONIQ 5 crossover.

With an annual production capacity of 300,000 electric vehicles, HMGMA also plans to manufacture the Korean automotive group’s other brands, including its premium brand Genesis and Kia Corp., later.

Hyundai said the Georgia plant will be a smart factory, with all processes of production, including order collection, parts procurement and logistics, optimized with the help of artificial intelligence and robots.

As part of the group’s commitment to sustainability, the plant will primarily rely on renewable energy sources to power the facility and use emission-reduction technologies to meet the RE100 requirements, it said.

HYUNDAI AFFILIATES ALSO TO BE POWERED BY RENEWABLE ENERGY

The solar energy from the Stillhouse Solar Project will also be used to power Hyundai Motor Group affiliates operating in Georgia.

Auto parts maker Hyundai Mobis Co.’s North American electrification business (MNAe), Hyundai Steel Co.'s Georgia corporation (HSGA) and Hyundai Transys Co.’s business in Georgia (HTGP) are part of Hyundai Motor Group’s contract with Matrix Renewables.

Hyundai Motor said its latest deal is significant in that it will receive solar energy from a new renewable energy development project rather than existing solar energy generating facilities.

The automaker expects 140,000 tons a year of carbon reductions from the deal, equivalent to the amount of carbon emissions from some 84,000 mid-sized sedans a year.

“Starting with this deal, Hyundai will continue to invest in the US as part of our transition to renewable energy for carbon neutrality,” said a Hyundai Motor Group official.

In Korea, Hyundai also spends heavily on building its own renewable energy generation facilities – part of the automotive group’s vision to achieve carbon neutrality by 2045 by operating all its production facilities in Korea and abroad with 100% renewable energy.

Hyundai Motor Group Chairman Chung Euisun has vowed to become a top-tier eco-friendly auto brand by then.

Write to Jin-Won Kim at jin1@hankyung.com

In-Soo Nam edited this article.