South Korean auto giant Hyundai Motor has started construction on a $1.5 billion mega factory in that country that will produce only electric vehicles.
The group, which owns the Hyundai and Kia brands, conducted a much-publicized groundbreaking ceremony this week in the city of Ulsan, where the automaker launched its first assembly plant in 1968.
The new production facility will be able to make 200,000 electric vehicles a year, the company announced in a statement. The project is scheduled to be completed in 2025, and mass production of electric vehicles will start in the first quarter of 2026.
Hyundai Motor’s flagship luxury brand Genesis will produce an electric sport utility vehicle as the first model off the line.
Meanwhile, Hyundai Motor Group is also investing $5.5 billion in Georgia to build electric vehicles and battery facilities.
What does this mean for me?
The carmaker’s massive investment in electric vehicles comes at a time when some of its rivals are rethinking their investment in this space.
General Motors said last month it would put off increasing production of electric trucks, while Ford recently said that it was cutting 700 workers building its F-150 Lightning electric pickup, blaming multiple constraints, including supply-chain issues.
Demand for some electric vehicles is slackening, with new electric vehicle models sitting unsold on dealer floors longer than gas-powered vehicles.