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Hyundai Motor said on Sunday it plans to invest $5 billion in the US by 2025 to further develop mobility technologies in areas such as autonomous driving, robotics and AI.
The investment comes in tandem with the automaker’s recent announcement of a plan to spend $5.54 billion to build its first dedicated electric vehicle and battery manufacturing facilities in the US outside of Savannah, Georgia. That facility is expected to open in the first half of 2025 and is expected to have an annual production capacity of 300,000 vehicles.
About $10 billion in new investments will be used to advance Hyundai’s “goal to provide sustainable and smart mobility solutions,” the company said.
Hyundai aims to be one of the top three suppliers of electric vehicles in the U.S. by 2026 and is one of many global automakers establishing new supply chains and manufacturing facilities in America to take advantage of what is expected to be a decade ahead of exponential growth. growth for the category.
The company had previously announced a plan to sell 3.23 million all-electric vehicles annually worldwide by 2030.
It also aligns with the Biden administration’s drive to allow companies to set up electric vehicle supply chains in the US rather than abroad. The government announced a $3.1 billion plan earlier this month to boost domestic battery production, following the president invoking the Defense Production Act in April to encourage domestic production of minerals needed to make batteries for electric vehicles. The White House has set a goal of 50% electric vehicle sales by 2030.
This recently announced investment from Hyundai will enable the company to partner with “U.S. public and private entities to bring innovative products and mobility solutions to our valued customers in the U.S. while supporting global carbon neutrality efforts.” Euisun Chung, executive chairman of Hyundai Motor, said in a statement.
That includes areas such as robotics, advanced air mobility, artificial intelligence and autonomous driving, the company said.
Hyundai Motor bought an 80% stake in robot maker Boston Dynamics from Softbank in December 2020. The company, known for its four-legged dog-like robot Spot, was valued at $1.1 billion. Boston Dynamics, previously funded by Google, began commercializing its first robot in June 2020.
The automaker also leverages driverless technology through Motional, a venture founded with US-based mobile technology company Aptive. Motional is currently testing its robotic taxi service on U.S. public roads and plans to offer commercial service in 2023, one of several efforts to bring autonomous vehicles onto roads across the country.
In November, Hyundai founded Supernal, which aims to develop a family of electric air vehicles in the fast-growing advanced air mobility industry. The company said it plans to launch its first commercial flight in 2028.