Hyundai to build EV factory in South Korea targeting production by 2025

Hyundai EV

Hyundai Motor will build a dedicated electric vehicle (EV) factory in South Korea in order to support the demand of its employees to boost job in the country, Reuters news report said.

Hyundai Motor will start the production of electric vehicles by 2025, the company’s union said in a statement. Hyundai Motor gave no further details in its statement.

In May, Hyundai Motor Group, which houses Hyundai Motor and Kia Corp, said it would invest 63 trillion won ($48.1 billion) in South Korea through to 2025.

Hyundai Motor’s unionised workers in South Korea voted this month for a possible strike for the first time in four years over demands for higher wages. They were also angry at management prioritising investment outside the country.

Hyundai Motor, South Korea’s largest automaker, last opened an automobile factory in South Korea in 1996.

Hyundai said in May it would invest $5.5 billion to build EV and battery manufacturing facilities in Georgia. The EV facility in Georgia is scheduled to break ground in early 2023 and begin commercial production in the first half of 2025.

“Sales of internal-combustion-engine vehicles are scheduled to be banned in certain markets so the new EV factory is vital to Hyundai Motor’s survival,” said Chang Moon-su, analyst at Hyundai Motor Securities, a subsidiary of the automaker.