Hyundai, the world’s third-largest carmaker, has commenced construction on a brand-new electric vehicle (EV) plant in Ulsan, South Korea. With a total investment of £1.5 billion, this marks Hyundai’s first domestic plant in nearly three decades. The facility, spanning an impressive 548,000 square meters, is expected to have an annual production capacity of 200,000 units by the first quarter of 2026.
The plant’s primary focus will be the assembly of the Genesis SUV. Ulsan, Hyundai’s hometown, already houses five of the company’s other facilities, establishing it as the largest automotive plant globally. Hyundai envisions this new plant to be “people-centric,” employing innovative manufacturing platforms that prioritize safety and efficiency.
During the groundbreaking ceremony, Young-jin Jang, Korea’s deputy trade and industry minister, expressed confidence in Hyundai’s position in the electric vehicle era. He emphasized the government’s commitment to supporting Hyundai’s investment and improving the business environment through incentives and the elimination of growth-inhibiting regulations.
Amid concerns about a potential decline in EV demand, other automotive giants, including Tesla, General Motors, Ford, and Toyota, have scaled back their investment plans. However, Euisun Chung, Hyundai’s executive chair, remains optimistic. While acknowledging the challenges posed by a lack of charging infrastructure, Chung believes that the overall trend for EVs is positive.
This strategic move by Hyundai demonstrates their strong commitment to the electric vehicle market. By establishing a state-of-the-art domestic plant, they are positioned to meet the increasing demand for EVs while contributing to the economic growth of South Korea.
1. Why did Hyundai choose Ulsan for its new EV plant?
Answer: Ulsan is Hyundai’s hometown and already hosts several of the company’s existing facilities, including the world’s largest automobile plant. This proximity and familiarity with the area make it an ideal location for Hyundai’s new electric vehicle plant.
2. What will be the annual production capacity of the new plant?
Answer: Hyundai’s new EV plant in Ulsan is expected to have an annual production capacity of 200,000 units once it enters production in the first quarter of 2026. This capacity will play a significant role in meeting the growing demand for electric vehicles.
3. How does Hyundai plan to prioritize worker safety and efficiency at the new plant?
Answer: Hyundai aims to create a “people-centric” environment at the new plant, using innovative manufacturing platforms that ensure optimal working conditions. These measures prioritize both worker safety and production efficiency.
4. Are other automotive companies scaling back their investment in EVs?
Answer: Yes, some automotive companies, including Tesla, General Motors, Ford, and Toyota, have recently scaled back their investment plans for electric vehicles due to concerns about a potential decline in demand. However, Hyundai remains confident in the positive trend for EVs and continues to invest in this market.