Hyundai Motor Group to invest $18 billion in domestic EV facilities by 2030

Korean President Yoon Suk Yeol delivers a congratulatory speech at the groundbreaking ceremony of EV-exclusive plant in Hwaseong, south of Seoul on Arpil 11. [Photo by Lee Seung-hwan]

South Korea’s Hyundai Motor Group vowed to invest 24 trillion won ($18.2 billion) over the next eight years to expand domestic electric vehicle production facilities, with an aim to become the world’s third-largest EV manufacturer by 2030.

Hyundai Motor Group unveiled the mid- to long-term investment plan on Tuesday as Kia Corp., the smaller automaker under the conglomerate, started the construction of an EV-exclusive plant in Hwaseong, south of Seoul. The groundbreaking ceremony was attended by Korean President Yoon Suk Yeol and Hyundai Motor Group Executive Chairman Euisun Chung. It is the first EV plant in Korea.

“The global automobile industry is facing a big paradigm shift,” Yoon said. “The automobile industry that has been the driving force of our economic growth should respond preemptively to the paradigm shift. The government will work as a team (with the automakers) to lead mobility innovation.”

The investment is part of the conglomerates plan to produce 3.64 million EVs by 2030, with 1.51 million units being built in South Korea. Hyundai Motor Group has said that it will introduce more EV models to its lineup.

The plant will have the annual capacity to churn out up to 150,000 units, mainly EV-based purpose built vehicles. When integrated with autonomous driving technology, these vehicles can be used extensively such as robot taxis, unmanned cargo transporters and mobile offices. Kia aims to begin production in the second half of 2025.

Korean President Yoon Suk Yeol, center, shakes hands with Hyundai Motor Group Executive Chairman Euisun Chung, left, at the groundbreaking ceremony of EV-exclusive plant in Hwaseong, south of Seoul on Arpil 11. [Photo by Lee Seung-hwan]

Yoon added that the government will offer tax and research and development support so that Korean automakers engage swiftly in the innovative transition.

Yoon highlighted that the EV plant and autonomous driving testbed in Hwaseong will be part of the world‘s leading advanced industry base in the region outside Seoul, along with the chip mega cluster in Yongin and information technology and software cluster in Pangyo.

“We will create the southern area of Gyeonggi Province equipped with world-class infrastructure and competitiveness into the world’s best EV, chip and IT cluster,” Yoon said.

President Yoon also promised to expand transportation infrastructure for businesses by swiftly promoting the Great Trade Express project, which was one of his presidential campaign pledges.

Yoon said that the GTX-A high-speed train will first offer services between Suseo in Seoul and Dongtan early next year. Construction will also begin this year for the GTX-C that connects Suwon and Yangju, all in the Seoul metropolitan area. The A and C lines will be extended to Pyeongtaek.

Kia’s new plant in Hwaseong is the first fully-built car plant in Korea in 29 years after the construction of Hyundai Motor Co.’s Asan plant in 1994.