Hyundai Motor Co (005380. K.S.) announced on Tuesday that it will invest 109.4 trillion won ($85.4 billion) through 2032, dedicating a third to meet a “seismic change” toward electric cars (E.V.s).
Hyundai Motor, which with its subsidiary Kia Corp (000270. K.S.) is one of the world’s ten largest automakers by sales, also said it wants to increase E.V. production in the U.S., its biggest market. E.V.s will make up 75% of U.S. output by 2030 from 0.7%.
The carmaker aims to spend 35.8 trillion won on E.V.s until 2032 and sell 2 million E.V.s 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 (E.V.) market,” the firm stated on investor day.
Hyundai Motor announced it would invest 9.5 trillion won over ten years to develop next-generation batteries and improve its competitiveness.
Hyundai Motor hopes to debut competitive lithium-iron-phosphate (LFP) batteries with higher energy density and low-temperature efficiency around 2025.
By 2028 and beyond, the corporation plans to source over 70% of batteries through joint partnerships.
Other strategies to ensure stable supply include partnering with specialized companies, startups, and battery companies.
“Joint research and equity investment in startups to accelerate the development of next-generation batteries is also underway,” the business added.
The Seoul-based manufacturer wanted a 10% E.V. operating profit margin by 2030.
After closing its fifth plant, Hyundai Motor will close another facility in China this year. It will focus on SUVs and Genesis luxury brand models by reducing model numbers from 13 to 8.
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