To augment its EV product portfolio, enhance production facilities and sharpen its focus on smart mobility solutions, Hyundai Motor Group (HMG), which includes Hyundai Motor Company and Kia Corporation, announced its plan to invest $7.4 billion in the US by 2025. In addition, the investments will enhance overall product competitiveness by prioritising future mobility technologies, including electrification and hydrogen energy.
Hyundai and Kia will invest in growing their EV manufacturing footprint to scale production to meet the local market demands. Accordingly, Hyundai will offer a suite of American-made electric vehicles to consumers starting next year.
The group will monitor the market conditions and US government EV policy to finalise its plan to enhance its local production facilities and gradually expand its local EV production.
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 US 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.”
Sean Yoon, President and CEO of Kia North America, said, “One key element of Kia’s transformation is transitioning from internal combustion engine to electrification. With our strategic investment in the United States to produce EV models, we are making huge strides to lead the EV market but also increase our contribution to the economies where we do business.”
Hydrogen ecosystem
To fuel its intent in the hydrogen energy ecosystem, the group plans to work the US government and other business partners. It signed an MoU with the US 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.
Later this year, Hyundai will work on a demonstration project in preparation for the commercialisation of fuel cell electric trucks. It will also work with local partners to conduct a hydrogen refuelling demonstration project for fuel cell electric trucks and provide logistics between port and inland warehouses by utilising fuel cell electric trucks.
The company has previously made an agreement with Cummins to accelerate the deployment of fuel cell electric systems in the market.
Urban air mobility, robotics, autonomous
Hyundai Motor Group will launch a subsidiary in Washington, DC, to spearhead the Group’s Urban Air Mobility businesses (UAM). The subsidiary will focus on creating a UAM ecosystem and revolutionising the mobility experience. Besides, it will establish its presence in the robotics through Boston Dynamics, where it acquired a controlling 80% stake.
In addition, it has created the joint venture, Motional, in partnership with the leading US mobility technology firm Aptiv. Focused on commercialising driverless technology, Motional has obtained the industry’s first driverless license in the state of Nevada and plans to commercialise 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 their autonomous driving technology in preparation for Lyft’s robotaxi launch in 2023.