Hyundai Motor Group to Invest $7.4 Billion In the U.S. by 2025
Hyundai Motor Group (HMG), which includes Hyundai Motor Company and Kia Corporation, announced its plan to invest $7.4 billion in the U.S. by 2025 to produce future EVs, enhance production facilities and further its investments in smart mobility solutions.
HMG's investment is intended to enhance overall product competitiveness by prioritizing future mobility technologies, including electrification and hydrogen energy.
José Muñoz, Hyundai Motor Company's Global Chief Operating Officer and President and CEO of Hyundai Motor North America said, "I am excited to make this announcement on behalf of the Hyundai Motor Group. This investment demonstrates our deep commitment to the U.S. market, our dealers and customers. Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up."
Sean Yoon, President and CEO of Kia North America added, "One key element of Kia's transformation is transitioning from internal combustion engine to electrification. With our strategic investment in the United States to produce EV models, we are making huge strides to lead the EV market but also increase our contribution to the economies where we do business."
Hyundai and Kia will invest in growing its EV manufacturing footprint to scale production and satisfy U.S. market demands. Hyundai Motor will offer a suite of American-made electric vehicles to U.S. consumers starting next year.
Hyundai and Kia will monitor the market conditions and U.S. government EV policy to finalize its plan to enhance its U.S. production facilities and gradually expand its local EV production.
Hyundai Motor Group says its looks forward to working with the U.S. government and other business partners to expand the U.S. hydrogen energy ecosystem. The Group is committed to fostering a hydrogen society to create new business opportunities for a sustainable future.
Hyundai Motor Group signed an MOU with the U.S. Department of Energy in February 2020 to cooperate in hydrogen fuel cell technology innovation and global expansion. This included the installation of a hydrogen refueling station and providing NEXO SUVs.
Later this year, Hyundai will proceed on a demonstration project in preparation for the commercialization of fuel cell electric trucks. Hyundai Motor will also work with local partners to conduct a hydrogen refuelling demonstration project for fuel cell electric trucks. And provide logistics between port and inland warehouses by utilizing fuel cell electric trucks.
Hyundai have previously made an agreement with Cummins Inc., an U.S. based company that specializes in advanced powertrain, to accelerate deployment of fuel cell electric systems in the U.S. market.
Hyundai Motor Group will launch a subsidiary in Washington, D.C. to spearhead the Group's UAM businesses. The subsidiary will focus on creating a UAM ecosystem and revolutionizing the mobility experience.
The Group also will firmly establish its presence in the robotics field through Boston Dynamics. Last year, the Group announced that it agreed to acquire a controlling 80 percent interest in Boston Dynamics in a deal that values the mobile robot firm at $1.1 billion.
In addition, Hyundai Motor Group has created the joint venture, Motional, in partnership with the leading U.S. mobility technology firm Aptiv. Focused on commercializing driverless technology, Motional has obtained the industry's first driverless license in the state of Nevada and plans to commercialize robotaxi service in 2023 along with its partner Lyft. Motional has started testing Hyundai's all-electric IONIQ 5 equipped with advanced autonomous driving technology on public roads. Together, the Hyundai Motor Group and Motional will enhance its autonomous driving technology in preparation for Lyft's robotaxi launch in 2023.