Hyundai Motor-invested Ionity raises $791 mn new funding for EV infra in Europe

Ionity. [Source: Hyundai Motor Group]

Hyundai Motor Group’s inroad into the European electric vehicle market is expected to pick up speed after European ultra-fast charging network Ionity backed by the South Korean auto mogul raised $791 million in a latest funding round to expand its electric vehicle charging network across Europe.

According to industry sources on Sunday, Ionity recently has successfully raised 700 million euros ($791 million) in new funding from New York-based world’s largest fund operator BlackRock Inc.

Ionity, founded in 2017 and run as a joint-venture between automakers like Hyundai Motor, Kia, BMW and Ford, currently operates around 1,500 ultra-fast charging stations on expressways in 24 European countries.

With the large new funding, Ionity is expected to speed up its plan to expand its ultra-fast charging network to 7,000, more than four times of the current amount, on expressways and other main roads in major European cities. The number of charging units at each station will also be added to an average 12, more than doubled from current six.

Hyundai Motor and Kia currently hold a 20 percent stake in Ionity after the European Commission approved it last year. They first invested in the company in September 2019.

Hyundai Motor"s Ioniq 5. [Source: Hyundai Motor Group]

The addition of charging stations by Ionity is expected to help Hyundai Motor and Kia accelerate their penetration into Europe that is the largest market for EVs to Hyundai Motor and Kia. The two makers sold a combined 104,883 units from January to October in Europe, achieving the 100,000 unit sales milestone for the first time in the European market.

Expanded charging infrastructure could help Hyundai and Kia’s strategic EV lineups better appeal to local customers. Ionity now is planning a project to transform its charging space itself and give better charging experience to drivers by establishing stations and facilities at cafes, restaurants and stores.

Hyundai Motor and Kia have been active in securing charging network with rapid charging units and slow chargers as well in Europe on the back of its partnership with Digital Charging Solutions (DCS).

Their aggressive move in Europe could help the Korean auto giant make successful forays into other EV markets particular the United States where it has formed a strategic partnership with local ultra-fast charging network Electrify America (EA).

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