Hyundai’s Ulsan EV Factory Sets Sights on World Domination by 2030

“We possess the world’s greatest weapon: ‘the world’s most skilled craftsmen.’ I am confident that, thanks to the abilities and dedication of these excellent individuals, it won’t be long before Korean cars, our cars, sweep the world.”

This statement echoed through the site of Hyundai’s Ulsan electric vehicle (EV) factory groundbreaking ceremony on the 13th, delivered through the restored voice of the late Chairman Chung Ju-young via artificial intelligence (AI). The Ulsan factory of Hyundai, inheriting the grand dream of Chairman Chung half a century ago, signaled the start of a new challenge towards becoming a century-old company in the electrification era.

This marks the first time in 29 years that Hyundai has built a new factory in South Korea, following the Asan factory. Hyundai Motor Group Chairman Chung Eui-sun said, “The Ulsan EV-exclusive factory, inheriting the humanistic spirit of the late Chairman Chung, plans to complete a people-centered factory leading the next 50 years, equipped with innovative production facilities.”

Hyundai Motor Group’s bold decision to accelerate domestic EV production capacity this year surpasses expectations as a ‘first mover’ in the electrification era, aiming to strengthen product supply and industrial base. The efforts to increase production capacity through the establishment of an EV-exclusive factory and conversion of exclusive lines are part of the efforts to lay the groundwork for leapfrogging into a future mobility powerhouse by strengthening the research and development (R&D) and manufacturing capabilities of EVs and revitalizing the industrial ecosystem.

Ahead of Hyundai’s Ulsan EV-exclusive factory with an annual production capacity of 200,000 units, Kia broke ground on an EV-exclusive factory with a yearly production capacity of 150,000 units in Autoland Hwaseong last April. Autoland Gwangmyeong has also begun converting internal combustion engine production facilities into EV-exclusive lines.

Hyundai Motor Group has set a mid-to-long-term roadmap to invest a total of 24 trillion won (approximately $20.4 billion) in the domestic EV field by 2030, with a lineup of 31 EV models. The goal is to increase EV production to 1.51 million units annually, exporting 60% of this, or 920,000 units, and expanding global EV production to 3.64 million units to achieve the top three in global EV sales by 2030. Despite recent concerns about demand slowdown in the global EV market, Hyundai Motor Group continues to invest according to its mid-to-long-term roadmap.

Developing top-notch products requires advanced core technologies such as motors, batteries, maximization of battery efficiency, ultra-high voltage management and safety systems, and fast charging. To do so, it’s essential to secure manufacturing competitiveness between automakers and parts suppliers.

Establishing a domestic EV-exclusive factory is a commitment to continue active collaboration with domestic parts companies even in the era of future cars. Hyundai Motor Group is closely cooperating with EV parts companies included in recent national strategic technologies amidst the automotive industry’s transformation, such as electrification acceleration. The plan is to contribute to the development of the Korean automotive industry by supporting domestic parts companies to continue their global leadership in the electrification field, which they have secured in the internal combustion engine field.

A Hyundai official said, “The establishment of the EV-exclusive factory and the expansion of production lines will be a stepping stone leading to the creation of an essential prerequisite for the EV industry ecosystem and a virtuous cycle structure that enhances the competitiveness of related industries, including the expansion of investment by domestic parts companies and acceleration of technology development.”

By. Jeong Chi Yeon