Hyundai to Invest $18 Billion in BEVs by 2030

By 2030, the Hyundai Motor Group plans to spend around 24 trillion won ($18.2 billion) on new electric vehicles as part of its commitment to increase the production of these vehicles. 

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As part of its goal of becoming one of the world’s top three electric car manufacturers, the group has also announced that it will increase its annual output of electric cars in Korea to 1.51 million units by the end of this decade, which is about 40% of the estimated world EV production of 3.64 million units, according to an e-mail sent on Tuesday.

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Hyundai Motor Group consists of Hyundai Motor Co., Kia Corp., Genesis, a luxury brand which is owned by Hyundai, and Hyundai Mobis Co., which is responsible for parts and service operations.

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Across Hyundai's portfolio of brands, the company said that it is committed to having 31 EVs by 2030. In addition to this, it also stated that Kia is planning to build a new factory in Hwaseong City south of Seoul to manufacture electric vehicles. In the coming years, Kia aims to introduce a three-row electric SUV, the EV9, in Korea, while Hyundai plans to introduce the Ioniq 7 sometime in 2024, the first electric SUV with three rows.

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Hyundai's announcement on Tuesday is a continuation of what the company has already said when it comes to its investment in a greener future that is already in place. A number of battery-powered electric vehicles are to be introduced by Hyundai and Genesis in the next ten years, as well as 14 electric vehicles from Kia. This is said to be a major contribution to the company's goal of selling 3.5 million EVs per year by 2030.

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Additionally, Korean automakers and battery producers are also still working on figuring out how to navigate US President Joe Biden's Inflation Reduction Act, which requires carmakers to build EVs in the US in order to qualify for subsidies under the act.

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Due to the fact that Hyundai does not have any operational plants dedicated to EVs in the US at the moment, the company has been lobbying US officials for changes to the bill. IRA guidance issued earlier this month showed little change in that regard as compared to the last guidance issued.

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A groundbreaking ceremony was held by Hyundai on Tuesday for the Hyundai Hwaseong plant, which was attended by the President of the Republic of Korea, Yoon Suk Yeol.

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The government announced in a separate statement that Yoon's administration will announce a package of support for Korea's EV industry in the first half of this year, including financial assistance and investments in the R&D of auto parts. An official from the presidential office has said that it hopes for South Korea to become an "Asia hub" for the production of EVs around the world.