TECH Hyundai plans $5 billion investment in U.S. on mobility technology
- Hyundai Motor announced on Sunday that it plans to spend $5 billion in the U.S. on developing mobility solutions such as autonomous driving and robotics.
- Last week, Hyundai said it would spend $5.54 billion to build its first dedicated electric vehicle and battery manufacturing facilities in the U.S.
- The investment is part of a larger push by Hyundai to advance mobility electrification more broadly.
Hyundai Motor said on Sunday it plans to invest $5 billion in the U.S. by 2025 to further develop mobility technologies in areas like autonomous driving, robotics, and A.I.
The investment comes alongside the automaker’s recent announcement of a plan to spend $5.54 billion to build its first dedicated electric vehicle and battery manufacturing facilities in the U.S., located outside of Savannah, Georgia. That facility is expected to open during the first half of 2025 and is projected to have an annual production capacity of 300,000 vehicles.
Some $10 billion of new investment will be used to further Hyundai’s “goal to provide sustainable and smart mobility solutions,” the company said.
Hyundai is aiming to be one of the top three electric vehicle providers in the U.S. by 2026 and is one of several global automakers establishing new supply chains and production facilities in America to take advantage of what is expected to be a decade ahead of exponential growth for the category.
The company had previously announced a plan to sell 3.23 million fully electric vehicles worldwide annually by 2030.
It also dovetails with a push from the Biden administration to have companies set up electric vehicle supply chains in the U.S. as opposed to overseas. The administration announced a $3.1 billion plan earlier this month to boost the domestic manufacturing of batteries, which followed the president invoking the Defense Production Act in April to encourage domestic production of minerals that are required to make electric vehicle batteries. The White House has set a goal of 50% electric vehicle sales by 2030.
This newly announced investment from Hyundai will allow it to strengthen its partnership with “U.S. public and private entities to offer innovative products and mobility solutions to our valued customers in the U.S. while supporting global carbon neutrality efforts,” Euisun Chung, executive chair of Hyundai Motor, said in a statement.
That will include areas like robotics, advanced air mobility, artificial intelligence, and autonomous driving, the company said.
Hyundai Motor bought an 80% stake in robot maker Boston Dynamics from Softbank in December 2020, The company, known for its four-legged dog-like robot Spot, was valued at $1.1 billion. Boston Dynamics, which was previously financed by Google, started selling its first robot commercially in June 2020.
The automaker is also pushing into driverless technology through Motional, a venture formed with U.S.-based mobile technology company Aptive. Motional is currently testing its robotaxi service on U.S. public roads and intends to start offering commercial service in 2023, one of several efforts to bring autonomous vehicles to roads across the country.
In November, Hyundai formed Supernal, which is aiming to develop a family of electric air vehicles in the burgeoning advanced air mobility industry. The company said it plans to launch its first commercial flight in 2028.
Source CNBCMay 23, 2022