Hyundai Motor to Invest $85 Bln by 2032 to Accelerate EV Plans

South Korea’s Hyundai Motor Co (005380. KS) said on Tuesday it plans to invest about 109.4 trillion won in the period through to 2032, allocating around a third of that amount to meet a “seismic change” in the industry toward electric vehicles (EVs). The world’s third-biggest automaker, in tandem with affiliate Kia Corp, also among the world’s ten biggest automakers by sales, has set a goal to lift annual EV production to 1.51 million units and its global volume to 3.64 million by 2030.

Those goals represent a more than threefold and sevenfold increase from this year’s projections. The company, which also produces fuel-cell-powered buses and solar panels, expects to achieve operating profit margins of 10% or higher in its EV business by 2030.

The company is working to build up its battery element technology and expand its talent pool. It will introduce competitive lithium-iron-phosphate batteries offering better energy density and low-temperature efficiency in 2025. It will also develop various battery cells optimized for various vehicle types to match different regional and market demands.

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Hyundai is stepping up efforts in India, where it will build a factory near Chennai to manufacture batteries and produce EVs by 2032. It plans to increase the facility’s total capacity to 850,000 units annually, compared with 181,000 units currently. It will also build 100 charging stations.

In addition to that, the company is enhancing its research and development capabilities in new-generation batteries, electric motors, and software. The company will also focus on building its presence in the United States, partnering with several universities to develop new EV technologies. It is slated to begin production of the Ioniq 7 N electric SUV in 2024. Based on the E-GMP platform, which is shared with the Genesis GV90 and Kia EV9, it should be able to seat three and have more than 300 miles of range.

Hyundai Motor Group, which includes luxury brand Genesis and Hyundai Mobis Co, makes cars under the Azera, Sonata, Veloster, Accent, i20, i30, IONIQ, NEXO, Santa Fe Hybrid/Plug-in Hybrid, Tucson, Creta, Kona, and Venue names as well as commercial vehicles under the STARIA, H-1, and H-100 models. The firm also provides parts and services for the vehicles it produces. Hyundai Motor Group was founded in 1967 and is headquartered in Seoul, South Korea. The company is listed on the Korea Exchange and has a mainboard in Tokyo. Its stock rose 4.9% to close at 1.7 trillion won on Tuesday. The benchmark Kospi index was up 0.3% at 2,055 points. The company is scheduled to release quarterly results on June 14. The firm will also host a conference in New York City on Thursday. Investors and analysts are expected to discuss the company’s EV strategy.