Hyundai Motor Group to Invest $7.4 billion in U.S. EV industry by 2025

In a press release yesterday, Hyundai Motor Group (HMG), comprising Hyundai Motor Company and Kia Corporation, announced its plan to invest $7.4 billion in the U.S. by 2025 to produce future EVs, enhance production facilities and further its investments in smart mobility solutions. The group’s investment will enhance overall product competitiveness by prioritising future mobility technologies, including electrification and hydrogen energy.

The Seoul-headquartered global automotive manufacturer will invest in growing its EV manufacturing footprint to scale production and satisfy U.S. market demands, as well as monitor the market conditions and U.S. government EV policy to finalise its plan to enhance its U.S. production facilities and gradually expand its local EV production. Hyundai Motor will offer a suite of American-made electric vehicles to U.S. consumers starting next year.

José Muñoz, Hyundai Motor Company’s Global Chief Operating Officer and President and CEO of Hyundai Motor North America, said, “I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the U.S. market, our dealers and customers. Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up.”

HMG also states that it is committed to fostering a hydrogen society to create new business opportunities for a sustainable future, and will expand the U.S. hydrogen ecosystem in collaboration with local private and public partners. The group signed an MOU with the U.S. Department of Energy in February 2020 to cooperate in hydrogen fuel cell technology innovation and global expansion. This included the installation of a hydrogen refuelling station and providing NEXO SUVs.

In addition, Hyundai Motor Group has created the joint venture, Motional, in partnership with the leading U.S. mobility technology firm Aptiv. Focused on commercializing driverless technology, Motional has obtained the industry’s first driverless license in the state of Nevada and plans to commercialize robotaxi service in 2023 along with its partner Lyft. Motional has started testing Hyundai’s all-electric IONIQ 5 equipped with advanced autonomous driving technology on public roads. Together, the Hyundai Motor Group and Motional will enhance its autonomous driving technology in preparation for Lyft’s robotaxi launch in 2023.

U.S. President Joe Biden, who has recently called for $174 billion in new spending to boost electric vehicles and charging, is scheduled to meet with South Korean President Moon Jae-in in Washington next week to talk about North Korea, COVID-19 vaccines, and other issues. HMG’s new announcement about investing in EV deployment in the US certainly comes at an interesting time.