Hyundai Motor to invest $85 billion by 2032 to accelerate EV plans

By Hyunsu Yim and Heekyong Yang

SEOUL (Reuters) -South Korea’s Hyundai Motor Co said on Tuesday it plans to invest about 109.4 trillion won ($85.4 billion) in the period through to 2032, allocating around a third to meet a “seismic change” in the industry toward electric vehicles (EVs).

Hyundai Motor, which together with affiliate Kia Corp is among the world’s 10 biggest automakers by sales, also said in a statement that it aims to lift the production of EVs in the United States, its biggest market. EVs will account for 75% of its U.S. production by 2030 from 0.7% now.

The car maker said it plans to spend about 35.8 trillion won on EVs in the period to 2032, targeting the sale of 2 million EV units annually by 2030.

“Hyundai Motor is leveraging its heritage of innovation and knowledge accumulated over a long period of time … amidst seismic change in the industry with competition intensifying in a bid for leadership in the electric vehicle (EV) market,” the company said on its investor day.

To enhance its competitiveness in batteries and develop next-generation batteries, Hyundai Motor plans to invest 9.5 trillion won over the next 10 years, it said in the statement.

Hyundai Motor said it plans to introduce competitive lithium-iron-phosphate (LFP) batteries with increased energy density and improved low-temperature efficiency for the first time around 2025.

The company aims to source more than 70% of batteries through its joint ventures by 2028 and beyond.

Other plans, include collaboration with specialised companies and startups, as well as establishing joint ventures with battery companies to ensure stable supply.

“Joint research and equity investment in startups to accelerate the development of next-generation batteries is also underway,” the company said.

The Seoul-based automaker said it aimed to achieve an operating profit margin of 10% or higher in the EV business by 2030.

In China, Hyundai Motor said it will halt production at another plant this year following the shutdown of its fifth plant. It also plans to reduce the available model numbers from 13 to eight to focus on SUVs and Genesis luxury brand models.

($1 = 1,280.8200 won)