South Korea’s top auto parts maker Hyundai Mobis Co. will invest a combined $20 million in two U.S. venture capital funds as part of efforts to stay competitive in the race for future mobility technologies.

The auto parts unit under Hyundai Motor Group said Thursday it would invest in ACVC Partners and MOTUS Ventures to “secure future technologies and new engines for growth amid the rapidly-changing business environment.”

The two Silicon Valley-based funds have largely focused on identifying startups in next-generation sensors, biometrics and robotics in North America.

Hyundai Mobis said its partnership with the global venture capital firms would help boost its competitiveness in future technologies centered on autonomous driving, vehicle electrification and connectivity. In 2018, it independently developed radar sensors for self-driving vehicles after years of relying on imports.

The company’s R&D spending has surged in recent years, reaching 965.4 billion won ($804.5 million) in 2019 from 696.8 billion won in 2016. It has vowed to keep its annual R&D expenditure at around 1 trillion won at its Mabuk research center in Korea and four R&D sites overseas to continue securing new proprietary technology.

It has also pledged to invest directly and indirectly in promising new startups focused on future mobility.

Last year, it invested $50 million in Velodyne, a U.S. light detection and ranging company, to mass-produce level 3 autonomous driving Lidar systems.

In the same year, it joined its automaking affiliates Hyundai Motor Co. and Kia Motors Corp. to invest a combined $2 billion in a 50:50 joint venture with Ireland-based autonomous vehicle startup Aptiv to develop a self-driving platform.

By Lee Jong-hyuk and Kim Hyo-jin

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