Hyundai Motor Co marked a significant milestone in its commitment to electric mobility as it commenced construction on a dedicated electric vehicle (EV) plant in South Korea. The groundbreaking ceremony for the 2 trillion won ($1.52 billion) facility took place on Monday, underscoring Hyundai’s ambitious strides toward electrification.
As the world’s third-largest automaker by sales, Hyundai, in collaboration with its affiliate Kia Corp, aims to commence mass production of EVs at the new plant in the first quarter of 2026. The completion of construction is anticipated by 2025. Hyundai’s CEO, Jaehoon Chang, addressed reporters at the event, affirming the company’s current focus on existing projects in the United States and its home country.
When questioned about potential plans for additional dedicated EV plants, Chang emphasized the ongoing concentration on the established facilities. He noted that Hyundai is attentively monitoring the EV market’s sentiment, expressing confidence in the positive trajectory of EV adoption, notwithstanding challenges related to charging infrastructure shortages.
In contrast to Hyundai’s optimistic outlook, other automotive giants are adjusting their EV production strategies. General Motors Co cited a flattening demand for EVs and announced a one-year delay in the production of Chevrolet Silverado and GMC Sierra electric pickup trucks in Michigan. Ford Motor Co, too, is temporarily reducing shifts at a plant manufacturing its electric F-150 Lightning pickup truck.
Even industry leaders like Tesla Inc are reassessing their plans, with a slowdown in the construction of a factory in Mexico. Additionally, a recent announcement from GM and Honda revealed the termination of a $5 billion joint plan to develop lower-cost EVs.
The $1.52 billion investment by Hyundai in the South Korean EV plant signals a pivotal move towards aligning with global trends in sustainable transportation, solidifying the company’s commitment to a future dominated by electric mobility. Read Similar Story
(1 USD = 1,316.51 KRW)
