Hyundai, Kia agree to pump $16.5bn into EV production in South Korea

Hyundai Motor Group and affiliate automaker Kia have agreed to spend $16.5 billion to produce electric vehicles at a new factory in South Korea.

Hyundai Motor Group, which includes Kia, Hyundai Motor, and Genesis, said the factory will build 150,000 vehicles every year, supplying Hyundai and Kia with enough volume to supply customers with EVs. The factory ultimately would increase annual EV production in South Korea to 1.44 million units by 2030. The companies are expected to build 350,000 cars in the country this year, a statement from Hyundai noted. The planned 1.44 million vehicle capacity by 2030 would account for about 45 percent of the two companies’ global EV production volume by that year, Automotive News reports.

The factory will be on Kia’s Hwaseong manufacturing campus, according to the automaker’s own press release on the subject. Construction is expected to begin as soon as the first half of next year, but production will not ultimately begin until the second half of 2025.

Recently, Hyundai launched the IONIQ 5, which has won numerous awards in the automotive industry. The company plans to build a new EV plant in the United States, and it could potentially land in Georgia where Kia already operates one of the country’s largest automotive manufacturing sites.

Kia has an exciting new model in the EV6, which has plans to be produced sometime next year and will compete with the many vehicles in the widely-popular SUV market.

Genesis also recently announced that it would launch the GV60 in the United States. The vehicle will come in two packages: Advanced and Performance. The Advanced starts at $58,890 and includes class-leading standard equipment and technologies. Equipped with Face Connect, a 12.3-inch digital cluster with Navigation, Vehicle-to-Load charging, premium audio from Bang & Olufsen, and more.

Hyundai Motor Group plans to sell over 3 million EVs every year by 2030 across the globe. Goal projections put the company at a 12 percent market share.

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