Korean manufacturer Duckyang Industrial Co. announced Thursday it will invest $10 million at a new plant in Braselton, Georgia, that will make battery modules and energy storage systems. Accordingly, the auto supplier will hire 285 people to make parts that will accompany electric vehicle batteries produced by SK Innovation nearby, at its $2.6 billion, 2,600-worker plant in Commerce.
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In fact, Duckyang didn’t say when it would start production. However, the company commented that it would occupy a 230,000-square foot (21,000-square meter) building in an industrial park. Moreover, the new plant will be located near an Amazon (retailer) warehouse.
Duckyang leveraging Georgia’s opportunities
Worth noting, Duckyang already supplies cockpit modules. These consist of a dashboard assembly of more than 130 parts (including steering wheel, instruments, and electronics) provided to automakers, including Kia and Hyundai.
In this sense, Duckyang CEO Dong-in Son said in a statement, “By entering the U.S. electric vehicle battery market with SKBA, we will have the opportunity to cooperate with many other automotive companies. For instance, including Hyundai and Kia Motors, that already have a manufacturing base in the U.S.”
According to US News, Duckyang could claim various tax breaks, including an income tax credit allowing it to deduct $1,250 per job from state income taxes annually. Through this deduction, the company could save up to $1.8 million over five years, as long as workers make at least $28,000 per year.
Other incentives include Georgia’s government support in providing job training. Braselton and Jackson County are also expected to give Duckyang property tax breaks.
Accordingly, Georgia’s Economic Development Commissioner Pat Wilson said the plant shows how a flagship company can bring other suppliers in its wake. “In Georgia, we’re focused on growing the entire electric mobility supply chain.”
Another partnership with Ford Motor Co.
As we previously reported, SK Innovation also announced Thursday that it would form a joint venture with Ford Motor Co. This partnership, starting in 2025, will consist of batteries and related equipment production to meet Ford’s battery needs.
Thus, BlueOval SK (the joint venture) would make enough batteries to require about two jointly owned plants. Moreover, Ford said that it would need the capacity of 10 factories worldwide by 2030. Finally, SK said it would spend about $5.3 billion to build the plants.