Hyundai and Kia are investing $ 16.5 billion to boost EV production in Korea

Hyundai and Kia want to invest 21 trillion won ($ 16.5 billion) in South Korea to increase production of their electric vehicles. The announcement confirms that Kia will build a new factory in the country to manufacture its planned electric purpose built vehicles (PBVs).

The two carmakers aim to increase annual electric vehicle production in Korea to 1.44 million units by 2030, more than the 350,000 EV they expect to produce locally this year. If Hyundai and Kia hit that number, it means about 45 percent of their electric cars will be manufactured in Korea, Bloomberg Comments.

Read more: Kia confirms new Korean factory for electric purpose-built vehicles

Hyundai Motor Group aims to establish a 12 percent share of the global EV market with an annual sales target of 3.23 million electric vehicles by 2030. A key part of this plan involves the aforementioned factories dedicated to PBV.

The facility will be built at Kier’s existing Hwaseong plant and will initially have an annual capacity of 100,000 vehicles per year but will later increase to 150,000 units. Kia plans to start construction on the site in the first half of 2023 and will start production in the second half of 2025.

“This dedicated PBV facility is a key pillar of our Plan S strategy because Kia wants to claim the top position in the global PBV market,” said Ho Sung-sung, Kia’s president and chief executive. “We will initially explore new markets with derivative PBV models, then gradually expand our presence in the global market with dedicated PBV models featuring autonomous driving technology.”

The first car to be built on this site will be based on a medium-sized PBV car manufacturer’s ‘eS’ skateboard platform that can flexibly accommodate the sizes of different PBV models. After launching this medium-sized model, Kia will launch micro-sized PBVs, multi-seat shuttles and large PBVs that can be used as mobile offices or stores.

Separately, Hyundai is expected to announce plans to set up an electric car plant in South Georgia soon, which will create 8,000 new jobs.

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