Hyundai Motor Group said Tuesday it will shell out 24 trillion won ($18.1 billion) to boost its electric vehicle production at home by 2030, aiming to become one of the top three carmakers globally in terms of EV sales.
As part of the carmaker’s ambitious EV push, Kia broke ground to build the nation’s first EV-only production plant later in the day.
“Kia’s EV plant is the first domestic production facility Hyundai will be building in 29 years. The government as a team player will play a role in helping Hyundai lead innovation in the global mobility industry,” President Yoon Suk Yeol said in his congratulatory remarks during the ceremony held in Hwaseong, Gyeonggi Province.
The event was also attended by Hyundai Motor Group Executive Chair Chung Euisun, Kia CEO Song Ho-seong and some 200 company and government officials.
The carmaker’s 1 trillion won funding for Kia’s EV plant is the first domestic investment made under a new government initiative that aims to nurture Korea as a top-tier player in the field of future mobility, according to the presidential office.
Under the initiative, the local automotive industry plans to expand production capacity by fivefold and cement its leading position as a global EV production and export base.
Hyundai Motor Group alone seeks to expand its EV production capacity to 1.51 million units locally and 3.64 million units overseas by 2030. It plans to expand its EV lineup to a total of 31 models, including Kia’s EV9 set for launch this year and Hyundai’s Ioniq 7 to be rolled out in 2024.
Kia’s EV plant will be at the forefront of carrying out Hyundai’s EV business strategy. It will start operation in 2025 with an annual production capacity of up to 150,000 units.
The manufacturing facility aims to produce the first Purpose Built Vehicle model, a customized autonomous driving car, called SW in 2025. Based on the exclusive platform for electrified PBVs, the mid-sized vehicle with a roomy interior will offer services such as ordering delivery, car-hailing and other B2B transactions.
Kia looks to add PBV lineups of large-sized EVs that can be used as fresh grocery delivery vans or portable offices and stores. It also plans to add small PBVs and self-driving robotaxis among its lineups.
The plant will adopt eco-friendly features with 20 percent less carbon emissions compared to existing factories, as well as advanced automation technology based on E-Forest, the group’s smart factory brand powered by artificial intelligence and big data.
For customized car production, it plans to install the “Cell” option in the conveyer system that can mass-produce a wide range of vehicles at the same time.
Hyundai will also build an EV manufacturing plant and transform existing factories into exclusive production lines for electric cars.
In particular, its EV plant looks to use Korea-made industrial robots, which will ramp up the local production rate of factory equipment to 99 percent and in turn give profits to local IT companies.
In order to improve its EV performance, the carmaker plans to develop its next-generation EV platform slated for launch in 2025. Under the integrated modular architecture that allows more efficient car production, it will make platforms for separate car segments.
Also on the list of improvements are advancing the power electric system for batteries and motors and extending single-charge driving range.
For customer convenience, the carmaker vowed to enhance EV charging services and set up an ultra-fast charging infrastructure across the country.
By the first half of this year, it will establish a standardized EV charging device and service quality verification center to provide stable chargers and swiftly exchange broken ones. It also plans to set up 3,000 high-speed chargers in charging stations by 2025.
