Hyundai Motor Company is making significant strides toward a sustainable future by signing the largest renewable energy supply contract in South Korea. Announced on Wednesday, the agreement with Hyundai Engineering & Construction, SK E&S, GS E&R, and Enlighten will provide the automaker with 610 GWh of renewable energy annually over the next 20 years, enough to fully charge its all-electric IONIQ 5 SUV more than 7 million times.
The new power purchase agreement (PPA) is poised to significantly reduce greenhouse gas emissions, with Hyundai estimating a decrease of approximately 5.6 million tons as a result of the contract. “In addition to PPAs, we plan to build a diverse renewable energy portfolio and accelerate carbon reduction through the expansion of solar power generation facilities,” a Hyundai spokesperson stated. The company aims to convert 100% of the electricity used in all its domestic and overseas business sites to renewable energy by 2045.
Hyundai is committed to enhancing its renewable energy capabilities, planning to expand solar power generation in Korea to ensure a stable supply moving forward. In 2024, Hyundai has already established 20MW of solar power generation across its facilities in Korea and plans to add another 11MW in Ulsan, where its first dedicated electric vehicle plant is under construction.
The automaker is not only focusing on domestic renewable energy but is also transitioning its overseas plants to 100% renewable energy. With its plants in the Czech Republic and Indonesia already converted, Hyundai intends to implement similar changes in its facilities in the United States, India, and Turkey through additional power purchase agreements.
Hyundai has recently commenced production at its new Metaplant America in Georgia, where the upgraded 2025 IONIQ 5 is now rolling off the assembly line. The new model promises enhanced range, a sleek design, and the inclusion of a North American Charging Standard (NACS) port to access Tesla’s Supercharger network.
