The Hyundai Motor Group, which consists both Hyundai and Kia, declared today that it will spend $7.4 billion in the United States by 2025 to “improve production facilities and deepen its investments in smart mobility solutions” in addition to producing future EVs.
Our top concern is that both Hyundai and Kia will produce battery electric vehicles in the United States, with Hyundai starting EV production in 2022.
In addition to BEVs, the group aims to invest in hydrogen fuel cells: It is not yet clear what and how many models will be introduced, as it depends on market conditions and EV regulation.
The investment made by HMG will increase the competitiveness of its products overall by giving electrification and hydrogen energy a priority in future mobility technologies.
Hyundai and Kia will invest in expanding their EV manufacturing footprint in order to scale production and meet the demands of the American market. Beginning the following year, Hyundai Motor will provide American consumers with a selection of electric automobiles.
When it comes time to formalize their plan to upgrade their U.S. manufacturing facilities and progressively increase their domestic EV output, Hyundai and Kia will be keeping an eye on the market and the U.S. government’s EV policy.
The Hyundai Ioniq 5 and Kia EV6 are the first two E-GMP-based electric vehicles, and both are presently in production and will be offered internationally by Hyundai and Kia.
Jos Muoz, president and chief executive officer of Hyundai Motor North America and the company’s global chief operating officer, said:
To make this statement on behalf of the Hyundai Motor Group, I’m thrilled. This investment shows how deeply committed we are to the American market, our dealers, and our clients. Hyundai will set the global and American standards for mobility in the future. Hyundai will continue to strive for quality in our existing and future product lineup, as demonstrated by our efforts.
Kia North America’s President and CEO, Sean Yoon, added:
With our strategic investment in the United States to develop EV models, we are making significant gains to dominate the EV market but also to improve our contribution to the economies where we do business. This is one crucial aspect of Kia’s transformation.
Additionally, Hyundai Motor Group declared that it would work with regional corporate and public partners to develop the hydrogen ecosystem in the United States.
As of right now, the business only sells the Hyundai NEXO model on a limited basis, but, like Toyota, it has large hydrogen ambitions.
“Hyundai Motor Group and the U.S. inked an MOU. Department of Energy will collaborate in February 2020 on the global development and innovation of hydrogen fuel cell technology. A hydrogen filling station was built as well as NEXO SUVs were provided.
Hyundai will move forward with a demonstration project later this year in preparation for the sale of fuel cell electric trucks. Additionally, Hyundai Motor will carry out a hydrogen refueling demonstration project for fuel cell electric trucks in conjunction with regional partners. and employ fuel cell electric trucks to transport goods between the port and inland facilities.
Hyundai and Cummins Inc. earlier reached an agreement to hasten the adoption of fuel cell electric systems in the U.S. market. Cummins Inc. is a U.S.-based corporation that specializes in advanced powertrain.
Urban Air Mobility (UAM), robots, and autonomous technologies are different investments.
To build its foothold in the robotics industry, Hyundai Motor Group paid $1.1 billion for 80 percent of Boston Dynamics. Work on autonomous driving is progressing under the Motional joint venture (with Aptiv).
The Motional company is already developing an autonomous Hyundai Ioniq 5. The first robotaxi will be released in 2023 (probably on a small scale):
“Motional, which is committed to commercializing driverless technology, has secured the sector’s first driverless license in the state of Nevada and intends to launch a robotaxi service in 2023 alongside its partner Lyft. Hyundai’s all-electric IONIQ 5 with cutting-edge autonomous driving technology is now being tested by Motional on public roads.
In order to get ready for Lyft’s robotaxi launch in 2023, the Hyundai Motor Group and Motional will improve its autonomous driving technology together.
In This Article...
What country produces Kia electric?
In order to increase the manufacturing of electric vehicles in South Korea, Hyundai Motor Co. and its subsidiary Kia intend to spend 21 trillion won ($16.5 billion), including the construction of a new factory with the potential to produce as many as 150,000 greener cars annually.
Who makes the batteries for Kia EVs?
In the latest Niro EV generation, Kia is utilizing battery cells from CATL for the first time. In the past, Kia’s electric vehicles have only used cells made by South Korean companies. Cost is cited as the cause of the change.
The Korean publication Hankook Ilbo revealed this in relation to a manager for Kia. In accordance with the report, the battery pack of the latest generation of the all-electric Kia Niro employs NCM cells from the Chinese firm CATL and thus, for the first time, no cells from South Korea. It has an energy content of 64.8 kWh.
Evidently, the lower prices were a major factor in the decision to move from CATL to SK Innovation (now SK On) as the cell supplier for the Niro EV. mentioning a “The Kia management did not want to remark because it was a private situation.
Kia had initially intended to transfer from SK On to LG Energy Solution, as Hankook Ilbo continues to report. On price alone, CATL might have prevailed. The paper suggests that the cost may be affected by both the cell chemistry employed and the economies of scale of the largest battery manufacturer in the world: The NCM811 cells from LGES and SK On had more nickel for higher energy density, but the CATL cell was an earlier design with more cobalt for faster charging at low temperatures, but at the expense of lower energy density.
“The CATL battery was selected in place of the domestic battery because it satisfied internal quality standards for (Kia) and the supply capacity was deemed enough.
There is reportedly rising anxiety in South Korea about Chinese cell manufacturers expanding there; some customers reportedly feel duped and appear to want to cancel their orders, the newspaper’s article states. In addition, “Hankook Ilbo is also flagging issues with the Chinese battery: “CATL, which mostly manufactures lithium-iron-phosphate (LFP) batteries, has mass-produced NCM batteries in a car model for the first time. According to the study, this indicates that quality or safety have not been shown. But this is untrueNMC cells from CATL are used, among others, in the Mercedes EQE, Mercedes EQS, and BMW iX3.
Delivery of the Kia Niro EV’s second generation is anticipated to begin in July. In reality, the drive hasn’t changed much since the first generation: the battery capacity goes up just a little, from 64 to 64.8 kWh, and the maximum charging power stays at 75 kWh. However, battery preconditioning will be available in the future. The 39 kWh compact battery option will no longer be offered.
Kia EV6 exists in Australia?
With two trim levels and two drivetrain choices offered across a total of three model versions, the Kia EV6 is now available for purchase in Australia.
KAI Australia has increased the asking price of the EV6 by $4600 as of 11/07/2022.
The local suggested retail price of the EV6 series has been adjusted due to an increase in expenses associated with raw materials, manufacture, and logistics, according to a statement from a Kia Australia representative.
At Kia Australia, our goal is to make sure that the price is remains reasonable for the market and, most importantly, the customer.
Additionally, Kia Australia has declared that it would not provide price protection to current EV6 order holders who placed their orders before to the price increase.
For the Australian lineup, Kia’s local branch has embraced the EV6’s global naming scheme, which includes the Air and GT-Line trim levels. The 430kW EV6 GT will boost the range either in the latter half of 2022 or the first part of 2023.
The entry-level EV6 Air RWD is priced at $72,590 before on-road costs, ruling it out of eligibility for different State electric car subsidies.
Where are Kia cars made?
Where are Kia automobiles made? While the majority of Kia’s production facilities are in South Korea, a few of the models you see here in the United States were made at North American factories.
What factory produces the Kia EV batteries?
In an effort to diversify its battery sources, Kia, a subsidiary of Hyundai Motor Co., selected batteries from CATL – Contemporary Amperex Technology Co Ltd – for its electric Niro crossover SUV, the Hankook Ilbo newspaper claimed, citing an anonymous Kia official.
According to industry watcher SNE Research, CATL is the largest battery manufacturer in the world, with a share of more than 35% of the rapidly expanding worldwide EV battery market, which analysts estimate to be worth tens of billions of dollars. CATL’s clients include Tesla Inc. and Volkswagen AG.
According to the article, the manufacturer considered cost-competitiveness while deciding on the Niro EV, which is targeted in the center of the auto market rather than the premium end. Financial and volume details of the battery transaction were not made public by the newspaper.
Chosun Ilbo, a local newspaper, said that CATL had been awarded a contract to supply batteries to the Hyundai Motor Group, the parent company of Kia and Hyundai Motor Co, as well as LG Energy Solution Ltd (LGES) and SK Innovation’s SK On.
Analysts predicted that Kia will be eager to use more affordable CATL batteries in the Niro EV in order to reduce costs. With batteries accounting for between 30 and 40 percent of the entire cost of manufacture, they are often the most expensive part of EVs.
According to Kevin Yoo, an analyst at Daol Investment & Securities, “this appears to be a logical course of business for South Korean automakers as they seek to increase EV sales and secure battery capacity… depending on only a few battery suppliers could be a danger element.”
According to the Hankook Ilbo newspaper, Kia has not yet informed its consumers of its choice to use CATL’s batteries.
For its electric cars intended for the South Korean market, Hyundai Motor and Kia have only so far employed batteries produced by two South Korean companies, LGES and SK On.
According to SNE Research, that partnership and local rival Samsung SDI Co Ltd control more than a quarter of the world’s EV battery market.
Who provides batteries to Kia?
The usage of CATL batteries was confirmed by Kia in a statement to Reuters. “With sales of its battery electric vehicles rising globally, Kia is partnering with numerous battery manufacturers to diversify and stable battery supply,” the company said. Without going into any detail, a CATL representative also confirmed the report.
What’s next
Currently, if you desire a Hyundai Ioniq 5 electric hatchback, the vehicle is manufactured in Asia before being transported by truck to your neighborhood dealership. However, Hyundai will eliminate international travel from the equation in the upcoming years.
Hyundai revealed last week that it would construct factories in Georgia to produce both electric automobiles and their batteries. The projects will cost Bryan County, Georgia, about $5.5 billion. The 2,923 acres will be used by the automaker, who will have easy access to the Port of Savannah and interstates. According to Hyundai, this production base will result in the creation of about 8,100 jobs.
The facility is expected to open in the first half of 2025, with construction set to begin in early 2023. The factory is expected to produce about 300,000 units annually while operating at full capacity, which is only 40,000 units less than what sister firm Kia is producing at its own factory in Georgia. The company only stated that it hoped to create a “broad range of completely electric vehicles” in Georgia; it did not specify which models will be produced there.
In a statement, Hyundai Motor Group Executive Chair Euisun Chung said, “As one of the world’s most prosperous and technologically proficient mobility leaders, we are tremendously happy to discuss our proposal to construct our first dedicated full EV and battery manufacturing facility in the US. The United States has long been a key component of the Group’s worldwide strategy, therefore we are thrilled to collaborate with the State of Georgia to advance electrified mobility and sustainability in the country.
The Korean behemoth is not the only automaker to be considering EV manufacturing in the American Southeast. On the same grounds where it produces the electric EQS SUV, Mercedes-Benz held a grand opening of its battery facility in Tuscaloosa, Alabama, earlier this year. Following its launch, the smaller EQE SUV will be produced in the same place.