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Hyundai Motor said on Sunday it plans to invest $5 billion in the United States by 2025 to further develop mobility technologies in areas including autonomous driving, robotics and AI.
The investment comes on the heels of the automaker’s recent announcement of a plan to spend $5.54 billion to build its first electric vehicle and battery manufacturing facilities in the United States, located in outside of Savannah, Georgia. This facility is expected to open in the first half of 2025 and is expected to have an annual production capacity of 300,000 vehicles.
Some $10 billion in new investment will be used to further “Hyundai’s goal of providing sustainable and intelligent mobility solutions,” the company said.
Hyundai aims to be one of the top three suppliers of electric vehicles in the United States by 2026 and is one of many global automakers establishing new supply chains and production facilities in America to leverage part of what should be a decade before the category’s exponential growth.
The company previously announced a plan to sell 3.23 million fully electric vehicles globally each year by 2030.
It also dovetails with a push from the Biden administration for companies to set up electric vehicle supply chains in the United States rather than overseas. The administration announced a $3.1 billion plan earlier this month to boost domestic battery manufacturing, after the president invoked the Defense Production Act in April to encourage domestic mineral production. necessary for the manufacture of batteries for electric vehicles. The White House has set a goal of 50% electric vehicle sales by 2030.
This recently announced investment by Hyundai will enable it to strengthen its partnership with “US public and private entities to deliver innovative mobility products and solutions to our valued customers in the United States while supporting global carbon neutral efforts”, said said Euisun Chung, executive chairman of Hyundai Motor. , said in a statement.
This will include areas such as 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-shaped robot Spot, was valued at $1.1 billion. Boston Dynamics, which was previously funded by Google, began shipping its first robot in June 2020.
The automaker is also getting into driverless technology through Motional, a venture formed with US mobile tech company Aptive. Motional is currently testing its robotaxi service on U.S. public roads and intends to begin offering commercial service in 2023, one of several efforts to bring autonomous vehicles to roads across the country.
In November, Hyundai established Supernal, which aims to develop a family of electric aerial vehicles in the nascent advanced air mobility industry. The company said it plans to launch its first commercial flight in 2028.