Hyundai Motor to Invest $85 Billion in Smart Mobility Transition

Hyundai Motor has announced plans to accelerate its transition toward becoming a smart mobility solution provider by investing KRW 109.4 trillion ($85 Billion) over the next 10 years. KRW 35.8 trillion will to go toward electrification, including KRW 9.5 trillion for battery development, and the remainder funding development of a next-generation modular architecture for EVs and increased EV production capacity.

The company also announced irs second-generation dedicated EV platform, under the new Integrated Modular Architecture (IMA), will replace its Electric-Global Modular Platform (E-GMP) going forward.

The next-generation platform will be used on 13 new dedicated EV models from Hyundai Motor Group’s automotive brands Hyundai, Kia and Genesis through 2030.

With IMA, Hyundai expects to standardise modules and parts between the models to further expand economies of scale and significantly reduce EV development complexity and costs.

The announcements were made at the 2023 CEO Investor Day in Seoul.

Hyundai’s first dedicated EV factory, the Hyundai Motor Group Metaplant America (HMGMA) in Georgia, U.S., is under construction with a targeted start-up date in the second half of 2024, with an annual production capacity of 300,000 vehicles to meet the demand for EVs in North America.

Meanwhile, an EV-dedicated factory in Korea, which is being established with an investment of about KRW 2 trillion, aims to start mass production in 2025, responding not only to domestic demand for EVs but also to the rapidly growing global market.

Jaehoon Chang, Hyundai Motor President and CEO, says: "The value of cultivating human-centered innovation by further developing technology inherited from the past is the distinct heritage that a company with a rich legacy can provide. As it originated from Pony, the IONIQ 5 N—a high-performance EV scheduled for unveiling in July—will embrace and carry forward the enduring heritage of Hyundai Motor Company."

Hyundai Motor sold more than 4.4 million vehicles globally in 2019, and currently employs some 120,000 personnel worldwide.