Hyundai and Kia to invest $7.4bn in US
South Korean automakers Hyundai and Kia are partnering to invest $7.4 billion in the US, which will include introducing new battery-electric vehicles to American consumers, advancing production processes and furthering the hydrogen economy in the country.
The company announced this plan on Thursday but did not name specific areas or facilities. It said it would be monitoring market conditions to allow them to gradually expand US production nationwide.
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The primary focus of this drive is to invest and improve their existing electrification footprint to scale production and "satisfy" US market demands.
Hyundai is also looking to further its interests in smart mobility solutions and work with both private and public investors to further the hydrogen economy.
The company revealed it is looking to cooperate to implement the hydrogen ecosystems viability and introduce charging systems.
In February 2020, it signed a memorandum of understanding with the US Department of Energy to develop better hydrogen fuel technology, install hydrogen fueling stations and produce more of its new NEXO SUV's.
"This investment demonstrates our deep commitment to the U.S. market, our dealers and customers," said Hyundai's Global COO José Muñoz, adding he hopes his company will become both a national and global leader in sustainable mobility.
"Our efforts are proof positive that Hyundai will continue to pursue excellence in our current and future product line-up", he added.
Sean Yoon, President and CEO of Kia North America said: "One key element of Kia's transformation is transitioning from internal combustion engine to electrification. With our strategic investment in the United States to produce EV models, we are making huge strides to lead the EV market but also increase our contribution to the economies where we do business."
Later this year, Hyundai will proceed with a demonstration project in preparation for the commercialisation of fuel cell electric trucks.
Hyundai Motor will also work with local partners to conduct a hydrogen refuelling demonstration project for fuel cell electric trucks. and provide logistics between port and inland warehouses by utilizing fuel cell electric trucks.
The automaker is also looking to launch a subsidiary company in Washington DC to invest in urban air mobility (UAM), robotics and autonomous technologies.
Its robotics division will join with Boston Dynamics, which it has operated an 80% stake in since last year.
Many of its other ventures into the tech market have already been announced, including its joint venture, Motional, which was formed alongside Aptiv.
It is not the first automaker to delve into the tech industry, particularly regarding autonomous tech.
Read more: VW and Microsoft team up for self-driving cars
Volkswagen has partnered with Microsoft to deliver self-driving cars and set up a tech division for delivering them.
They claim this will increase road user safety while alleging it ay reduce congestion and making mobility even more comfortable.
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