Hyundai to invest over $10 billion in mobility technology
Hyundai is increasing its investment in mobility technology, with the Motor Group aiming to become a leading provider of sustainable and smart mobility technology in the United States.
It has been reported that Hyundai will invest over €9.56bn (US$10bn) in America to help research and pioneer mobility technology. The investment will reportedly be made over the next few years, ending in 2025.
Hyundai investing in mobility technology with hopes to become US pioneer
Hyundai’s investment is thought to help with the introduction of mobility electrification, which aligns with carbon neutrality goals established in the United States. According to CNBC, Hyundai hopes to become one of the top three providers of electric vehicles in the US by 2026. It has been identified as one of several automakers that are establishing new supply chains, as well as production facilities that may be heavily used as electric vehicles become more accessible in the 2020s.
“We have come a long way and become very successful in a short period of time, but we are also preparing for our future”. said Euisun Chung, Executive Chair of Hyundai Motor Group, after meeting with US President Joe Biden in Seoul.
“The Group will strengthen our partnership with US public and private entities to offer innovative products and mobility solutions to our valued customers in the US while supporting global carbon neutrality efforts”.
Notably, Hyundai has publicly announced a plan to sell 3.23 million fully electric vehicles annually by the year 2030.
Investment going towards divergent mobility technology including AI
The increase in investment will, according to Hyundai, go towards the development of key future businesses, including robotics, AI technologies, advanced air mobility (AAM), and autonomous driving capability.
The Motor Group notably acquired robotics group Boston Dynamics in 2020, and will look to capitalise on this takeover by innovating in robots via mobility solutions.
Last year, Hyundai launched Supernal, an Advanced Air Mobility firm located in Washington D.C. The firm will reportedly use the investment towards developing an app that aims to help passengers with planning their journeys. The service, which would be an electric air vehicle that could be operated like a rideshare taxi, is set to launch in 2028.
With regards to innovations in artificial intelligence, Hyundai has signalled that it intends to increase investment. The company will look to pursue new business opportunities with identified local partners, with the hopes of broadening AI business infrastructure and working towards carbon neutrality.
“We have come a long way and become very successful in a short period of time, but we are also preparing for our future”, said Chung, adding, “The Group will strengthen our partnership with US public and private entities to offer innovative products and mobility solutions to our valued customers in the US while supporting global carbon neutrality efforts”.
Hyundai continues to invest heavily in mobility technology
Hyundai’s announcement follows the recent news that the Motor Group will establish its first EV and battery manufacturing facilities in America. The facilities are valued at around €5.3bn and are to be located in the State of Georgia.
Construction on the facility is anticipated to start in early 2023, with commercial production expected to begin in the first half of 2025. There will reportedly be an annual capacity of 300,000 electric vehicles, and will help the Hyundai Motor Group pioneer the transition to electric vehicles in the United States. The new facility will use many of Hyundai’s advanced intelligent manufacturing technologies.