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Tesla rival invests over $1.5 billion in groundbreaking EV manufacturing plant: ‘A promising future for the next 50 years’

The investment indicates faith in the future market.

The investment indicates faith in the future market.

Photo Credit: iStock

Hyundai is investing $1.52 billion in a production facility in Ulsan, South Korea, dedicated to electric vehicles. 

It’s a move that solidifies the automaker’s commitment to making cleaner rides, even as other rivals (including General Motors, Ford, and Honda), are pausing some EV endeavors, citing “cooling demand,” according to a Reuters report. 

The investment has a strong chance of paying off, though, as 10% of new global car sales in 2022 were EVs. What’s more, the EV market share has tripled since 2020, per a New York Times column. And, BloombergNEF notes that EV sales are expected to reach nearly 21 million by 2025 and about 80 million by 2050. 

With more competition, better technology, and falling prices, Hyundai’s move can ensure the company won’t be caught flat-footed. The plan is to start making EVs at the new plant in early 2026, per Reuters. 

“The new EV-dedicated plant in Ulsan is the beginning of a promising future for the next 50 years and the era of electrification. I am honored to share our dream of a 100-year company here,” Hyundai Motor Group’s Executive Chair Euisun Chung said, as reported by tech news website Teslarati. 

The world’s No. 3 automaker (by sales, with affiliate Kia) plans to produce 200,000 EVs annually at the new facility, Teslarati reports

It’s not the only clean-energy investment coming from Hyundai. In May, Hyundai and LG Energy Solutions officials made public plans on a partnership to build a $4.3 billion battery production plant in Georgia. The plant will support production of 300,000 EVs a year after it’s completed in 2025. 

Hyundai isn’t alone in EV investment. Tesla, for example, has six Gigafactories, with plans to expand.

The massive production sites build cars and batteries, with some shipping as many as 750,000 EVs a year, per Business Insider. Tesla CEO Elon Musk has hinted at building up to 12 more Gigafactories, making up to 20 million EVs annually by 2030, all per Business Insider. 

The investment indicates faith in the future market, which bodes well for Hyundai’s move. 

“Just as the dream of building the best car in the past made Ulsan an automotive city today, I trust Ulsan will be an innovative mobility city that leads the way in the era of electrification, starting with a dedicated EV plant,” Chung further said in the Teslarati story. 

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