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Hyundai Motor Group and SK On plan to invest $1.9 billion (2.5 trillion won) to build a new EV battery plant in the US. The partners are scheduled to sign a memorandum of understanding (MOU) on November 28 in Georgia, where Hyundai is building its first dedicated EV facilities.

According to the Korean Economic Daily, Hyundai and SK On are discussing a 50/50 joint venture to build the factory with an annual production of 20 GWh or enough for around 300,000 EVs.

Hyundai and SK have been in discussions since May to build a joint battery plant in the US. However, disagreements over how much each partner would receive have delayed progress.

In March, Hyundai outlined its strategy on how the automaker plans to become a global EV powerhouse, complete with local battery sourcing. To scale production in the US, Hyundai said it would build its first dedicated electric vehicle plant in Bryan County, Georgia.

The $5.5 billion EV facility was initially slated to begin commercial production in 2025, but with the passing of the Inflation Reduction Act in August, the South Korean automaker accelerated its timeline.

To satisfy the requirements of the IRA bill (battery sourcing and assembly) and to ensure its customers will receive the tax credit, Hyundai broke ground on its new facility on October 25. Although disagreements have delayed its US battery plant until now, a new report out of South Korea suggests Hyundai and SK On are planning to sign an MOU as early as next week to kick off production.

Hyundai-US-battery-plant
Hyundai IONIQ6 Source: Hyundai

Hyundai, SK On building a $1.9 US battery plant

Hyundai and SK On are discussing a 50/50 joint venture for the new battery plant that expects 20 GWh annual capacity, enough for around 300,000 EVs.

The new battery plant will supply pouch-type EV batteries for new Hyundai models built at its new facility in Bryan County, Georgia. Hyundai is already using SK’s batteries for its award-winning IONIQ5, the recently launched IONIQ6, and Kia’s EV6. The automaker also plans to use them in the future IONIQ7 SUV, Genesis GV70, and Kia EV9.

The joint venture’s new battery plant is expected to start production in 2026. With enough annual capacity for 300,000 EVs, the same output expected from Hyundai’s Georgia facility, the automaker has also been in talks with LG Energy for another EV battery plant in the US.

The Hyundai Motor Group has had success thus far in the transition to electric vehicles with strong demand and award-winning models.

However, experts have warned that pressure could build on Hyundai’s EV sales due to the IRA bill’s strict battery sourcing and assembly requirements.

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Wheel-E Podcast: ’70 MPH e-bikes’, Vietnam bans gasoline bikes, more

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Wheel-E Podcast: '70 MPH e-bikes', Vietnam bans gasoline bikes, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes “70 MPH e-bikes” prompting new law changes, recalled Amazon/Walmart e-bikes, Vietnam banning gasoline-powered motorcycles, and more.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 8:00 a.m. ET (or the video after 9:00 a.m. ET):

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Exxon earnings beat estimates as production growth softens impact of lower oil prices

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Exxon earnings beat estimates as production growth softens impact of lower oil prices

Exxon earnings beat estimates as production growth softens impact of lower oil prices

Exxon Mobil reported second-quarter earnings on Friday that declined significantly compared to last year, though the company beat Wall Street estimates as production growth in the Permian Basin and Guyana softened the impact of lower oil prices.

Exxon’s net income fell 23% to $7.1 billion, or $1.64 per share, compared to $9.2 billion, or $2.14 per share, in the same period last year.

Here is what Exxon reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Earnings per share: $1.64 vs. $1.54 expected
  • Revenue: $81.5 billion vs. $80.77 billion expected

The oil major pumped 4.6 million barrels per day, the highest output for the second quarter since Exxon and Mobil merged more than 25 years ago. Production in the Permian hit a record 1.6 million bpd.

Exxon’s production business posted a profit of $5.4 billion, down 23% from about $7.1 billion in the same period last year on lower oil prices. Its refining business booked earnings of $1.37 billion globally, up 44% compared to $946 million in the year-ago period due to higher refining margins.

Exxon paid out $9.2 billion to shareholders, including more than $4 billion in dividends and $5 billion in share repurchases. The oil major said it’s on pace to purchase $20 billion of shares this year.

Exxon has slashed its costs by $1.4 billion so far this year and $13.5 billion since 2019. It is aiming to cut another $4.5 billion through the end of 2030.

This is a breaking news story. Please check back for updates.

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Chevron profit hit by low crude oil prices and loss from Hess acquisition

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Chevron profit hit by low crude oil prices and loss from Hess acquisition

Chevron profit hit by low crude oil prices and loss from Hess acquisition

Chevron on Friday reported second-quarter earnings that took a substantial hit due to low oil prices and a loss on its acquisition of Hess Corporation.

The oil major’s net income declined about 44% to $2.49 billion, or $1.45 per share, from $4.43 billion, or $2.43 per share, in the same period last year.

Chevron booked a $215 million loss on the fair value measurement of Hess shares. When adjusted for that charge and other one-time items, Chevron earned $1.77 per share to beat Wall Street estimates.

Here is what Chevron reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Earnings per share: $1.77 adjusted vs. $1.70 expected
  • Revenue: $44.82 billion vs. $43.82 billion expected

Chevron completed its acquisition of Hess on July 18, after prevailing against Exxon Mobil in a long-running dispute that threatened to blow up the $53 billion deal. An arbitration court rejected Exxon’s claim to a right of first refusal over lucrative Hess assets in Guyana, clearing the way for Chevron to complete the transaction after a long delay.

Chevron expects the deal to begin adding to earnings in the fourth quarter. It also hopes to reduce annual run-rate costs by $1 billion by the end of 2025.

Chevron pumped a record 3.4 million barrels per day worldwide for the quarter, a 3% increase over the same period last year. U.S. production jumped about 8% to 1.69 million bpd compared to the year-ago period, with production in the Permian Basin hitting 1 million bpd. The Hess acquisition will add assets in the Bakken formation and Gulf of Mexico in addition to Guyana.

Chevron’s production business posted a profit of $2.72 billion, down 38% from $4.47 billion in the same period last year due to lower oil prices. Its refining business booked earnings of $737 million, up 23% from $597 million last year on higher margins for product sales.

Chevron paid out $5.5 billion to shareholders in the quarter, including $2.6 billion in share buybacks and $2.9 billion in dividends.

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