Hyundai breaks ground on $1.5B electric vehicle factory in South Korea

Home > Industry Analysis > Content

【Summary】Hyundai Motor is constructing a $1.5 billion electric vehicle (EV) plant in South Korea, with plans to begin mass production in 2026. The plant in Ulsan will have an annual capacity of 200,000 units and will produce electric SUVs. The groundbreaking event was attended by Hyundai Motor Group executives and local officials. This move follows Hyundai's commitment to launching 31 EV models by 2030.

FutureCar Staff Nov 12, 2023 10:15 PM PT

Hyundai breaks ground on $1.5B electric vehicle factory in South Korea

Hyundai Motor Co has begun construction on a new dedicated electric vehicle (EV) plant in South Korea. The automaker is investing 2 trillion won ($1.52 billion) in the project as part of its commitment to shift towards electrification. Hyundai Motor, along with its affiliate Kia Corp, plans to start mass production of EVs from the plant in the first quarter of 2026, following the completion of construction in 2025.

The new factory, located in Ulsan in the southeast of South Korea, will have an annual capacity of 200,000 units. The company has announced that the first model to be produced will be an electric sport utility vehicle (SUV) from its luxury brand Genesis. Hyundai Motor Group, which includes Hyundai Motor, Kia, and Genesis, aims to launch a total of 31 EVs by 2030.

The groundbreaking ceremony for the EV factory was attended by Hyundai Motor Group's Executive Chair Euisun Chung, Hyundai Motor's Chief Executive Officer, and other officials, including the Ulsan Metropolitan City Mayor. This marks the automaker's first new plant in South Korea in 29 years. Hyundai's Ulsan complex is currently its largest manufacturing site.

Unlike some of its competitors, Hyundai Motor has decided to stick to its EV rollout plans despite cooling demand. General Motors Co, for example, has delayed production of the Chevrolet Silverado and GMC Sierra electric pickup trucks due to flattening demand for EVs. Ford Motor Co has also temporarily reduced production at its plant that builds the electric F-150 Lightning pickup truck.

Furthermore, Tesla Inc is slowing down its plans for a Mexico factory, and GM and Honda recently announced the termination of their $5 billion joint plan to develop lower-cost EVs. In contrast, Hyundai Motor Group broke ground on a $5.54 billion EV and battery plants in the U.S. state of Georgia last year.