Hyundai Motor commenced construction on Monday for its new dedicated electric vehicle (EV) plant in South Korea, signaling a robust push towards electrification with a planned investment of 2 trillion won ($1.52 billion).
Anticipated to be operational by the first quarter of 2026, the facility located in Ulsan, southeastern South Korea, is slated to have an annual production capacity of 200,000 units. Hyundai aims to unveil its inaugural model from the plant, an electric sport utility vehicle (SUV) under the luxury brand Genesis.
The groundbreaking event, attended by Hyundai Motor Group’s Executive Chair Euisun Chung, Hyundai Motor’s Chief Executive Officer, and other dignitaries, including the Ulsan Metropolitan City Mayor, marks a significant milestone as the company’s first new domestic plant in 29 years. The Ulsan complex currently stands as Hyundai’s largest manufacturing site.
This strategic move aligns with Hyundai Motor Group’s broader vision outlined in April, targeting the launch of 31 electric vehicles by 2030, emphasizing a collective effort across its brands – Hyundai, Kia, and Genesis.
In a market landscape witnessing shifts in electric vehicle production plans, Hyundai’s commitment to its EV rollout remains unwavering. This stands in contrast to some competitors, such as General Motors, which recently announced a one-year delay in the production of Chevrolet Silverado and GMC Sierra electric pickup trucks.
While acknowledging flattening demand for EVs, Hyundai’s steadfast approach sets it apart from industry peers. Rivals like Ford are temporarily reducing production shifts, and Tesla and GM are adjusting plans for their respective factories.
Notably, Hyundai’s groundbreaking follows last year’s initiation of a $5.54 billion investment in EV and battery plants in the U.S. state of Georgia, underlining the company’s commitment to global electrification efforts.
