Hyundai Motor Group (HMG) has announced a plan to invest $7.4 billion in the United States by 2025 to produce electric vehicles, upgrade its production facilities, and explore more possibilities around intelligent mobility solutions. According to HMG, which includes Hyundai Motor Company and Kia Corporation, the investment will help strengthen the future product lines of both automakers.
“I am excited to make this announcement on behalf of the Hyundai Motor Group,” said José Muñoz, Hyundai Motor Company’s Global Chief Operating Officer and President and CEO of Hyundai Motor North America. “This investment demonstrates our deep commitment to the U.S. market, our dealers, and customers.”
“One key element of Kia’s transformation is transitioning from internal combustion engines to electrification,” added Sean Yoon, President and CEO of Kia North America. “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.”
EV & Hydrogen Initiatives
HMG will monitor the market and government policies as it moves to prepare its U.S. production facilities for EV production. According to HMG, Hyundai Motor will offer a suite of American-made electric vehicles to U.S. consumers starting in 2022. Similarly, HMG says they are looking forward to working with the U.S. government and other business partners to expand the U.S. hydrogen energy ecosystem.
HMG signed a memorandum of understanding with the U.S. Department of Energy in February 2020 to cooperate in hydrogen fuel cell innovations and aid in the global expansion of the technology. The MOU also included the installation of a hydrogen refueling station and providing NEXO SUVs.
Later in 2021, Hyundai will proceed with a demonstration project in an effort to commercialize fuel cell electric trucks. That demonstration project also includes working with local partners on hydrogen refueling and logistics strategies between port and inland warehouses. News of the demonstration project follows an earlier announcement between Hyundai and Cummins Inc. to accelerate the deployment of fuel cell electric systems in the U.S. market.
UAM, Robotics & Autonomy
As part of the $7.4 billion investment, HMG will launch a subsidiary in Washington, D.C. focused on creating an urban air mobility ecosystem. HMG is also hoping to establish a more substantial presence in the robotics field through the new investment. Last year, HMG agreed to acquire an 80 percent controlling interest in Boston Dynamics to support that goal.
With regard to driverless technology, HMG is entrusting much of that to Motional, a more recent joint venture created alongside Aptiv. Motional has already started testing Hyundai’s all-electric IONIQ 5 with automated driving technology on public roads. Based on current timelines, consumers in select markets will be able to book a Motional robotaxi through the Lyft app starting in 2023 (that robotaxi will likely be an IONIQ 5).
“Hyundai will lead the future of mobility in the United States and around the world,” Muñoz said. “Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up.”