Hyundai Motor will launch a new EV platform and 13 new EVs by 2030

Hyundai held its 2023 CE Investor Day yesterday updating its "Hyundai Motor Way" strategy with accelerated electrification and future mobility goals. The company will implement this strategy and accelerate its transition toward becoming a smart mobility solution provider by securing a large-scale investment of KRW 109.4 trillion over the next 10 years. Furthermore, in order to secure leadership in the future mobility industry, it has decided to focus on future businesses, such as autonomous driving, hydrogen, robotics and advanced air mobility (AAM).

The company announced that it will achieve a successful transition to electrification by efficiently and effectively leveraging its long experience in vehicle production and sales. In particular, the company has decided to initiate its ‘Hyundai Motor Way’ strategy by securing KRW 109.4 trillion for its next decade investment, including KRW 35.8 trillion for electrification. The company aims for 2 million units in annual EV sales by 2030. The key parts of the strategy include introducing a next-generation modular architecture for EVs, strengthening EV production capacity, battery development capabilities and future businesses.

President and CEO Chang explained how the company’s second-generation dedicated EV platform, under the new Integrated Modular Architecture (IMA), will replace its Electric-Global Modular Platform (E-GMP) going forward. The next-generation platform will be used on 13 new dedicated EV models from Hyundai Motor Group’s automotive brands Hyundai, Kia and Genesis through 2030. With IMA, the company expects to standardize modules and parts between the models to further expand economies of scale and significantly reduce EV development complexity and costs.

The vehicle development system implemented by the IMA represents a significant advancement compared to the current system, enabling maximum cost reduction through economies of scale. In the existing system, auto parts can only be shared among vehicles that share the same platform. However, with the IMA development system, over 80 common modules can be utilized across different segments, irrespective of vehicle type, allowing for versatile combinations. This breakthrough allows for greater flexibility and efficiency in the development process, paving the way for significant cost savings.

In the second-generation platform, the scope of vehicle development extends beyond the mid-sized SUVs covered by the current E-GMP system. It encompasses nearly all vehicle classes, ranging from small and large SUVs to pickup trucks, along with the flagship models of the Genesis brand.

Hyundai Motor plans to apply a range of battery solutions, including next-generation NCM batteries and LFP batteries, for the second-generation platform. The company is also exploring different form factors of batteries to enhance versatility. To further extend the driving range, Hyundai Motor intends to implement cutting-edge technology that enables battery charging and discharging while driving, utilizing an independent power bank. In addition, the integration of an AI-based battery management system will ensure real-time monitoring and diagnosis of battery conditions, ensuring enhanced safety by preventing thermal runaway.

In addition to these hardware improvements, the modular architectures and next-generation platform will enable software architecture compatibility in support of Hyundai Motor’s software-defined vehicle (SDV) strategy. The company aims to build an app ecosystem through the application of an open operating system and controller integration, including Level 3 and higher autonomous driving capabilities, high-performance semiconductors and over-the-air (OTA) update advancements.

In expanding production for the electrification transition, Hyundai Motor is not only building new factories dedicated to EVs but it is also promoting a rapid and efficient demand response strategy by utilizing its existing ICE plants. The company is currently producing EVs in this way at its plants in the U.S., South Korea, the Czech Republic, and India, it plans to convert additional lines as market demand dictates. In addition, the company is building dedicated EV factories in regions that are expected to grow significantly in the future and require localization. The new factories will be equipped with new ‘smart factory’ technologies to maximize the efficiency of EV production.

Hyundai’s first dedicated EV factory, the Hyundai Motor Group Metaplant America (HMGMA) in Georgia, U.S., is under construction with a targeted start-up date in the second half of 2024, with an annual production capacity of 300,000 vehicles to meet the demand for EVs in North America. Meanwhile, an EV-dedicated factory in Korea, which is being established with an investment of about KRW 2 trillion, aims to start mass production in 2025, responding not only to domestic demand for EVs but also to the rapidly growing global market.

To maximize production efficiency at these dedicated EV factories, Hyundai Motor Group Innovation Center in Singapore (HMGICS), which is scheduled to be operational this year, will be equipped with ‘smart factory’ technology. HMGICS will demonstrate various new manufacturing technologies for enhancement of quality, logistics and management automation and others.

The company will apply the smart manufacturing platform to factories dedicated to EVs. HMGMA will adopt more than 75 percent of the new technologies demonstrated at HMGICS. Compared to Hyundai Motor’s plant in Montgomery, Alabama, U.S., the company expects to significantly improve logistics and assembly automation rates and the number of vehicles that can be produced.

In the U.S. market, which is rapidly transitioning to EVs, Hyundai Motor plans to increase the localization rate by increasing the proportion to 75 percent from the current 0.7 percent. In Europe, it will also promote electrification in line with market conditions by increasing the proportion to 54 percent from the current 7 percent. The company plans to increase the proportion of EV production in other regions to 16 percent from the current 2 percent, in line with market demands.

With global EV demand growing faster than market forecasts, Hyundai Motor is raising its 2030 sales target from 1.87 million units to 2 million units. The company has also raised sales targets for major regions and is preparing to flexibly adjust its sales targets according to market demand.

Hyundai Motor is targeting more than 10 percent profitability for EVs in 2030 based on the EV development system implemented by the IMA, high-margin derivative model operation, cost reduction through production facility operations strategy and new revenue generation through SDVs.

For its battery-wise competitiveness, Hyundai Motor plans to invest KRW 9.5 trillion over the next 10 years. Hyundai Motor has established a specialized battery development organization within its Namyang R&D Center, focused on battery system and cell design, battery safety reliability and performance development and next-generation batteries. In addition, the company is expanding external collaborations with specialized companies, startups and universities. It is also establishing JVs with battery companies to ensure stable supply and to secure optimized battery performance for its EVs. Joint research and equity investment in startups to accelerate the development of next-generation batteries is also underway.

For solid-state batteries, Hyundai Motor is collaborating with companies, such as Solid Power, to secure elements and manufacturing process technologies and collaborating with SES to develop lithium metal batteries. In addition, the company is internalizing next-generation battery element technology and expanding its talent pool.

Hyundai Motor has completed the construction of the Battery Joint Research Center at Seoul National University, which is scheduled to open in July this year. The dedicated research facility is equipped with the highest specification laboratory equipment at the same level as its own to improve the quality and completeness of its research.

Going forward, the company will continue to ensure superior performance and safety of its batteries and increase cost competitiveness. It is preparing various battery cells optimized for each vehicle type in consideration of the market and customer needs. It plans to introduce competitive lithium-iron-phosphate (LFP) batteries with increased energy density and improved low-temperature efficiency for the first time around 2025. The number of models to be equipped with LFP batteries will be expanded for emerging markets first.

To realize high energy density and improve battery safety, the company is focusing on the development of next-generation batteries, including lithium metal batteries and solid-state batteries, in the mid- to long-term. Next-generation batteries require the development of not only battery materials and cells, but also equipment and manufacturing technologies for mass production must be developed in parallel.

The next-generation battery developed in this way will be utilized not only for EVs but also as a power source for future mobility, such as AAM and robotics. It will make a great contribution to increasing synergies between future businesses as a mobility company. By securing the entire battery value chain technology, Hyundai Motor will realize optimized batteries for vehicles, cost competitiveness and consolidate its leadership in the EV era.

For global supply chain issues, Hyundai Motor has decided to respond by expanding local production of EVs and localizing parts. In order to stabilize the supply and demand of batteries, the company is promoting the expansion of joint ventures (JVs) by region. Its Indonesian battery joint venture is scheduled to go into operation in 2024, and the two U.S. battery JVs announced this year will go into operation in 2025.

The company is also reviewing the formation of a battery JV in Europe and plans to consider forming a new JV or expanding existing JVs in regions with high demand for EVs. Hyundai Motor Group also plans to stably procure more than 70 percent of battery demand through various battery JVs starting from 2028.