Hyundai Motor reportedly plans to build its first South Korean EV factory
Carmaker Hyundai said it plans to build a dedicated electric vehicle (EV) factory in South Korea, the first automobile plant to open in the country in almost 30 years.
Production is due to start by 2025, according to the company’ union, a pledge that the union said it had made in wage negotiations.
In May, the South Korean automaker announced plans to invest 63 trillion won ($49.8 billion) in South Korea through 2025.
This came after Hyundai Motor’s unionised workers voted for a potential strike over demands for higher wages, and frustration that the company was prioritising overseas investment.
The overseas investment mentioned include Hyundai’s plan to invest $10bn towards US mobility technology, of which $5.5bn would go towards new EV and battery manufacturing facilities in the US state of Georgia.
The facility is scheduled to open at the beginning of 2025 and is expected to have an annual production capacity of 300,000 vehicles.
“Sales of internal-combustion-engine vehicles are scheduled to be banned in certain markets so the new EV factory is vital to Hyundai Motor’s survival,” Chang Moon-su, an analyst at Hyundai Motor Securities, explained to Reuters.
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