[Asia Economy Reporter Changhwan Lee] Hyundai Motor Group has decided to make an investment worth 8 trillion KRW, including producing electric vehicles in the United States.
On the 13th, Hyundai Motor Group announced that it will invest a total of $7.4 billion (approximately 8.1417 trillion KRW) in the U.S. to secure future growth engines such as electric vehicle production and expansion of production facilities, hydrogen, urban air mobility (UAM), robotics, and autonomous driving.
Hyundai Motor and Kia plan to promote local production of electric vehicle models in the U.S., with Hyundai Motor starting the first production next year. They intend to establish a plan to gradually expand production by reviewing local market conditions and U.S. eco-friendly vehicle policies, including expanding production facilities.
Hyundai Motor is pushing for local production of electric vehicle models because the demand for electric vehicles in the U.S. is expected to surge. Industry experts forecast that the U.S. electric vehicle market will significantly expand to 2.4 million units in 2025, 4.8 million units in 2030, and 8 million units in 2035.
It is also interpreted as a proactive response to the Biden administration’s strongly promoted 'Green New Deal' and 'Buy America' strategies, as well as related electric vehicle policies.
A Hyundai Motor Group official stated, "Through investment for electric vehicle production in the U.S., we plan to establish a system that can stably supply electric vehicles and secure firm leadership in electrification," adding, "This is to respond to new demand for electric vehicles in the U.S., and there will be no transfer of domestic electric vehicle production volume; domestic plants will continue to serve as key bases for electric vehicles."
Hyundai Motor Group explained that it plans to actively cooperate with the U.S. government and companies to expand the hydrogen ecosystem in the U.S.
They will continue cooperation with the U.S. Department of Energy (DOE) for hydrogen and hydrogen fuel cell technology innovation and global expansion, and promote demonstration of hydrogen refueling infrastructure with local companies, logistics transportation using hydrogen fuel cell trucks linked to ports, pilot projects for commercialization of hydrogen fuel cell trucks, and supply of fuel cell systems.
Additionally, they will promote demonstration projects for hydrogen refueling infrastructure based on hydrogen fuel cell trucks with U.S. hydrogen refueling specialists. They will also conduct logistics pilot projects using hydrogen fuel cell trucks between ports and inland logistics bases. Furthermore, pilot projects for commercialization of hydrogen fuel cell trucks with large logistics companies will be launched from the second half of this year.
Moreover, they emphasized plans to solidify competitiveness in future innovative growth sectors through proactive investment and business promotion in UAM, robotics, and autonomous driving.
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