Hyundai plans $5 billion US investment in mobility technology

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Hyundai Motor said on Sunday it plans to invest $5 billion in the US by 2025 to develop mobility technologies in areas such as autonomous driving, robotics and artificial intelligence.

The investment comes alongside the automaker’s recent announcement of a plan to spend $5.54 billion to build its first dedicated electric vehicle and battery manufacturing facility in the US, located outside of Savannah, Georgia. This facility is expected to open during the first half of 2025 and is projected to have an annual production capacity of 300,000 vehicles.

About $10 billion in new investment will be used to further Hyundai’s “goal to provide sustainable and smart mobility solutions,” the company said.

Hyundai aims to be one of the top three electric vehicle suppliers in the US by 2026 and is one of several global automakers establishing new supply chains and production facilities in America to take advantage of what is expected a decade ahead of exponential growth for the company. category.

The company had previously announced a plan to sell 3.23 million all-electric vehicles worldwide annually by 2030.

It also fits in with an effort by the Biden administration for companies to establish EV supply chains in the US, as opposed to abroad. The administration announced a $3.1 billion plan earlier this month to boost domestic battery manufacturing, which followed the president invoking the Defense Production Act in April to encourage domestic production of minerals needed to make vehicle batteries. electrical. The White House has set a goal of 50% of electric vehicle sales by 2030.

This newly announced investment by Hyundai will enable it to strengthen its partnership with “U.S. public and private entities to deliver innovative products and mobility solutions to our valued U.S. customers, supporting global carbon neutral efforts,” Euisun Chung, Executive Chairman of Hyundai Motor said in a statement.

This will include areas such as robotics, advanced air mobility, artificial intelligence and autonomous driving, the company said.

Hyundai Motor bought an 80% stake in robot maker Boston Dynamics from Softbank in December 2020. The company, known for its four-legged robot Spot, is valued at $1.1 billion. Boston Dynamics, which was previously backed by Google, began selling its first robot commercially in June 2020.

The automaker is also investing in driverless technology through Motional, a venture formed with US mobile technology company Aptive. Motional is currently testing its robotaxi service on U.S. public roads and aims to begin offering commercial service in 2023, one of several efforts to bring autonomous vehicles to roads across the country.

In November, Hyundai formed Supernal, which aims to develop a family of electric air vehicles in the burgeoning advanced air mobility industry. The company said it plans to launch its first commercial flight in 2028.

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