South Korea’s Hyundai Motor Group said to be readying $7 billion EV plant project in the United States on Wednesday pledged 21 trillion won ($16.55 billion) through 2030 to ramp up domestic capacity for electric vehicle production and related technologies with a goal of turning out 1.44 million EVs annually from Korea.

Korean production lines would be responsible for nearly half or 45 percent of total EV output target of 3.23 million by Hyundai Motor and Kia Corp. by 2030.

The sudden capex outline comes ahead of the planned announcement of its U.S. investment, timed with President Joe Biden’s visit to Korea that has stoked union unrest.

The massive investment plan aims to advance the domestic electric vehicle ecosystem and to strengthen its role as a hub to lead innovation in the global mobility industry, Hyundai Motor Group said in a statement.

Hyundai Motor and its affiliate Kia together form the world’s fifth-biggest carmaker by sales.

The two carmakers will spend most of the planned capex in expanding their existing EV production facilities, developing future mobility technologies, building the EV infrastructure, and exploring new business opportunities.

Kia plans to invest in its Hwaseong plant, south of Seoul, to add a plant for purpose-built vehicles (PBVs). The new site to sit on a 66,000 square meter lot will enter construction next year and start operations in the second half of 2025 to initially produce 100,000 PBVs and then increase the volume to 150,000 units later.

The new plant will be equipped with E-FOREST technology, Hyundai Motor Group’s brand for smart factory system. The group will also bring manufacturing innovation from its technology incubator, Hyundai Motor Group Innovation Center in Singapore (HMGICS), to Korean plants in stages to innovate and optimize EV production through flexible production, customized logistics, and digital manufacturing systems.

For R&D investments, the group will develop a platform for next-generation EV models and key parts and technologies and establish new research facilities. The R&D plan includes the advancement of power electric systems of batteries and motors, and the development of technologies to increase the mileage per charge.

It will introduce eM, platform exclusively for passenger EVs, in 2025, and follow up with differentiated platforms for each vehicle class under the Integrated Modular Architecture (IMA) system designed to improve product development speed and efficiency by standardizing battery and motor parts.

Hyundai Motor Group will also establish a special purpose company with Lotte Group and KB Asset Management for the expansion of high-speed charging locations with a goal of installing 5,000 high-speed chargers in major cities across the country by 2025.

It will also explore new business opportunities in related EV fields, such as UBESS to utilize used batteries as energy storage devices.

Shares of Hyundai Motor ended Wednesday flat at 185,500 won ($146) and Kia 0.8 percent down at 84,500 won.

By Pulse

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