Hyundai Motor has commenced the construction of a $1.5 billion facility in Ulsan, South Korea, exclusively dedicated to manufacturing electric vehicles (EVs). The groundbreaking ceremony for the plant, capable of producing 200,000 electric vehicles annually, took place on Sunday, marking a significant step for the group that owns the Hyundai and Kia brands.
The new factory is expected to be completed in 2025, with mass production scheduled to begin in the first quarter of 2026. The initial model to roll off the assembly line will be an electric sport utility vehicle from Hyundai’s luxury brand, Genesis.
Euisun Chung, Executive Chair of Hyundai Motor Group, expressed confidence in Ulsan evolving into an innovative mobility city, leading the way in the era of electrification with the establishment of this dedicated EV plant. Ulsan holds historical significance for Hyundai as the location where the carmaker built its first assembly plant in 1968.
In a time when some automakers are slowing down electric vehicle production, Hyundai is doubling down on its investment in the EV sector. General Motors recently announced a postponement in expanding electric truck production, and Ford cited multiple constraints, including supply chain issues, as it laid off 700 workers building its F-150 Lightning electric pickup.
Hyundai Motor Group is not only focusing on domestic initiatives but is also making significant strides globally, with a $5.5 billion investment in Georgia to establish facilities for building electric vehicles and batteries. This proactive approach positions Hyundai to remain at the forefront of the electric vehicle market amid industry challenges and changing demand dynamics.
