Hyundai Group Announces $7.4 Billion Investment in U.S. for EVs
By Edward A. Sanchez – May 18, 2021
This month, the Hyundai Group announced a $7.4 billion investment in its U.S. manufacturing footprint to build electric cars. The exact details of the plan were not revealed, but the Hyundai Group’s two largest facilities in the U.S. are currently in Montgomery, Ala., and West Point, Ga. (northwest of Columbus). Most analysts and bloggers are speculating the bulk of the investment will be at Montgomery, but it could be spread between the two plants, or potentially involve an investment in a greenfield plant somewhere else (most likely also in the Southeast.)
Other items in the release mention a previously announced collaboration with Cummins for development of commercial vehicle fuel cells, investment in its joint-venture mobility company Motional with Aptiv, plans for a commercialized robotaxi service in Nevada, and the launch of an unmanned aerial mobility (UAM) group in the Washington, D.C. area with the intention of creating a UAM “ecosystem.” Let’s not forget that the Hyundai Group also took a controlling interest in Boston Dynamics, the company made famous by its simultaneously cute and terrifying robot dog.
If anything stands out about the Hyundai Group, it’s that the company is full throttle into the future. Sure, the pure-EV Stans can criticize the Hyundai Group for still pouring money into fuel cells when “EVs are clearly the future.” Yes, the current public hydrogen fueling infrastructure in the U.S. (and most other global markets) is highly limited. However, the fuel is likely to be a big part of the future heavy trucking infrastructure in the U.S. and elsewhere, if for no other reason than refueling convenience and logistics.
Part of Hyundai Group’s EV investment will go to fuel cell technologies, which makes a lot of sense when discussing heavy duty trucking.
While unmanned autonomous air taxis may seem like a frivolous pursuit in the greater scheme of the transportation realm, many things that once seemed far-fetched or only for the wealthy elite are now commonplace.
And unlike Toyota, which even in its reluctant acceptance of EVs, is still stubbornly hawking the benefits and virtues of its non-plugin hybrids as “electrified,” the Hyundai Group is making an earnest effort with both its current Kona and Niro EV models, as well as its upcoming E-GMP-based vehicles. The near-production-ready Ioniq 5 has already been driven by reviewers in Asia and Europe, and it’s likely we’re going to see some stateside in less than 12 months, at least for early evaluation drives by journalists and bloggers.
The Hyundai Group may not yet be the global juggernaut that Toyota is, but as of 2020, it made it into the top five, edging out Honda, Ford, and Daimler in overall global sales. And the Koreans are nothing if not ambitious.
Being a former Hyundai owner myself, I would definitely consider buying another Hyundai Group product. Both the Ioniq 5 and Kia EV6 look like attractive propositions. An electrified version of the new Hyundai Santa Cruz compact pickup would also be tempting.
Whatever ultimately comes of this announced investment, there’s no disputing $7.4 billion is a substantial sum. It’s clear the Hyundai Group is in it to win it, and in for the long haul with EVs.
(Images courtesy Hyundai Group)
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