Hyundai Motor Group, the South Korean automotive giant, has unveiled an ambitious $18 billion investment plan to transform the company into one of the top three electric vehicles (EV) manufacturers globally by 2030. This investment will be spread over the next five years and primarily focus on the development of electric vehicle technology and the expansion of the company’s production capacity.
The announcement comes at a crucial time, as governments worldwide are increasingly pushing for a reduction in carbon emissions and a shift away from fossil fuels. The electric vehicle market has been growing rapidly, with major automakers globally investing heavily in EV technology. Hyundai’s massive investment plan aims to place the company at the forefront of this transition.
As part of its investment plan, Hyundai intends to develop a wide range of new electric vehicles, including battery-electric and hydrogen fuel cell vehicles. The company has already experienced success with the launch of the Kona Electric and the Ioniq Electric. Hyundai is now looking to expand its electric vehicle offerings, with plans to introduce 23 new electric models by 2025.
Hyundai will also invest in research and development to enhance the performance and efficiency of its electric vehicles. This will involve the development of new battery technology and the improvement of the charging infrastructure required to support the widespread adoption of electric vehicles.
The automaker is planning to build new factories dedicated to producing electric vehicles. A new factory in Indonesia is in the works, capable of producing up to 150,000 electric vehicles per year. In addition, Hyundai is planning to construct a new electric vehicle production facility in the South Korean city of Ulsan.
This announcement follows a recent investment by Hyundai’s sister company, Kia, which pledged a 32 trillion won (~$24 billion) investment into electrification and future business areas. Both Hyundai and Kia are part of the Hyundai Motor Group, which also includes the luxury brand Genesis. Collectively, the group plans to expand its annual EV production in Korea to 1.51 million units and its global volume to 3.64 million units by 2030.
South Korea’s President Yoon Suk Yeol attended the groundbreaking ceremony for Kia’s first designated EV plant and pledged support for South Korea’s auto industry as it adapts to the changing landscape. The administration will expand tax benefits for domestic EV facility investments to boost production capacity by five times by 2030.
Last year, Hyundai Motor announced a $10 billion investment in the United States by 2025 to accelerate the development of EVs and autonomous vehicles. This investment includes the $6.5 billion earmarked for a new EV plant and battery manufacturing facility in Georgia.
