Hyundai, Kia to Build EVs in US as Part of $7.4 Billion Investment

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【Summary】Hyundai Motor Group, which includes Hyundai and Kia, announced plans to invest $7.4 billion into the U.S. by 2025 to produce future electric vehicles at its plant in Alabama. The investment will also go toward smart mobility solutions.

Original Vineeth Joel Patel    Jun 21, 2021 7:45 AM PT
Hyundai, Kia to Build EVs in US as Part of $7.4 Billion Investment
The Hyundai IONIQ 5 electric SUV.

Building cars in the United States is always a hot topic. American automakers like to continually point out how their vehicles are manufactured in different parts of the country, but quite a few non-American brands manufacture cars in the country. Hyundai, for instance, has a manufacturing plant in Montgomery, Alabama where the Sonata, Elantra, Santa Fe, and Tucson are manufactured. Now, Hyundai and Kia are looking to invest $7.4 billion in the U.S. by 2025 to produce electric vehicles in the country, further investments in smart mobility solutions, and enhance production facilities.

American-Built Hyundai EVs Coming Soon

The massive investment into the country looks to increase product competitiveness by prioritizing electrification and hydrogen as an energy source for transportation. The South Korean brand will continue to monitor "market conditions" and the U.S. government's electric vehicle policy to finalize its plan. Currently, the plan is to enhance its production facilities in the U.S. and expand its local EV production.

"This investment demonstrates our deep commitment to the U.S. market, our dealers and customers," said Jose Munoz, Hyundai Motor Company's Global CEO. "Hyundai will lead the future of mobility in the United States and around the world. Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up."

Hyundai didn't say how much money it plans to invest in separate areas, but claims that part of the investment will go into growing its EV manufacturing footprint in the country to meet market demands. The South Korean automaker aims to have a lineup of American-made electric vehicles on sale next year.

Investing In Future Mobility Services

Another aspect of the investment is to expand the country's hydrogen ecosystem. At the moment, California is the only state where consumers can purchase and fill up a hydrogen vehicle. Hyundai's looking to change that by working with the government and other partners to help expand the availability of hydrogen. Later this year, Hyundai will demonstrate how to refuel a commercial fuel-cell truck.

Electrified vehicles aren't the only thing Hyundai will be investing in. The South Korean automaker also claimed that urban air mobility, robotics, and autonomous technologies are other areas of focus. Hyundai plans to launch a subsidiary in Washington, D.C. to lead the way forward for the brand's urban air mobility business.

Hyundai's self-driving technology will come from its partnership with Aptiv, a U.S. mobility technology firm. The joint venture between the two brands is called Motional. It obtained the industry's first driverless license in Nevada and is looking to come out with a commercial robotaxi service in 2023 with its partner Lyft.

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