- Hyundai Motor plans a staggering investment of approximately 109.4 trillion won ($85.3 billion) by 2032.
- Approximately 35.8 trillion won ($27.8 billion) will be allocated specifically to EVs.
- Hyundai Motor aims to develop advanced lithium-iron-phosphate (LFP) batteries.
Hyundai Motor, one of the world’s top automakers, has big plans for the future. Very big.
Hyundai Motor aims to embrace the seismic shift towards electric vehicles (EVs). They have announced a staggering investment of approximately 109.4 trillion won ($85.3 billion) by 2032.
Hyundai Motor will allocate a significant portion of this investment towards EVs to meet the growing global demand. This is sure to solidify their future in the automotive sector. In particular, the company plans to spend around 35.8 trillion won ($27.8 billion) specifically on EVs. By 2030, they have set an impressive target of selling 2 million EV units annually.
Hyundai Motor has recognized the need for innovation in battery technology. Therefore, they have set aside 9.5 trillion won ($7.4 billion) for battery research and development over the next decade.
With this injection of research, they aim to introduce lithium-iron-phosphate (LFP) batteries by 2025. These LFP batteries have the capacity to change the emobility space, offering enhanced energy density and improved low-temperature efficiency.
To ensure a stable supply of batteries, the company plans to source over 70% of them through joint ventures by 2028 and beyond. They are actively collaborating with specialized firms and startups to accelerate the development of next-generation batteries.
Hyundai Motor’s ultimate goal is to achieve an operating profit margin of 10% or higher in the EV business by 2030. This demonstrates Hyundai’s shift to emobility. It also underscores the undeniable necessity for automotive manufacturers to future-proof their businesses by embracing the EV.
In the Chinese market, Hyundai Motor is strategically adjusting its operations. They plan to shut down another production plant, following the closure of its fifth plant. Additionally, they will streamline their model lineup from 13 options to 8, focusing on SUVs and their luxury brand, Genesis.
With substantial investments, collaborations, and a clear strategic vision, Hyundai Motor is positioning itself as a frontrunner in the EV transition. Their plans will help to shape the future of mobility and contribute to the global transition towards sustainable transportation. We’re seeing more major manufacturers take this approach, but the scale of Hyundai Motors’ investment is indicative of the kind of speed in electrification that we need to see across the industry.