President Moon Jae-in poses with notables, including Minister of Trade, Industry and Energy Sung Yun-mo, Hyundai Mobis President Park Jung-kook and KOTRA President Kwon Pyung-oh, as they participated in a groundbreaking ceremony for Hyundai Mobis’ project to build the nation’s sole EV parts plant in Ulsan, Gyeongsangnam-do, on Aug. 28. (Photo on the courtesy of Cheong Wa Dae website)

Hyundai Motor Group has declared the opening of a full-fledged era of electric vehicles.

Hyundai Mobis, a major automotive parts subsidiary of the business group, held a groundbreaking ceremony for the nation’s sole EV parts plant in Ulsan, Gyeongsangnam-do, on Aug. 28 in which President Moon Jae-in was present.

If the EV parts plant is completed by 2021 at a cost of 30 billion won, it will be capable of supplying core automotive parts necessary for the annual production of 100,000 EV units. The number of EV cars sold in the global market is predicted to soar to 28 million in 2025, a 14-fold jump from about 2 million in 2018.

The project may be construed as Hyundai Motor Group’s strong will to tap the global EV market, the biggest segment of eco-friendly cars, which also includes hybrid vehicles and hydrogen fuel cell cars.

Hyundai Mobis’ existing plant in Chungju, Chungcheongbuk-do, produces automotive parts for the production of eco-friendly cars, including hybrid cars, EVs and hydrogen fuel cell vehicles. But the new plant will be first that specializes solely on the production of EV parts. The upcoming plant on a site covering 150,000 sq. meters in size will churn out specialized automotive parts for EVs such as battery packs.

In particular, the plant will supply automotive part modules for “E-GMP,” Hyundai Motor’s first platform for EVs that will make its debut next year.

In a speech at the groundbreaking ceremony, President Moon stressed the need for companies which have already entered foreign markets to return home, as Japan’s removing Korea from the “white list” of countries subject to eases customs clearance took effect on the same day.

“When a ‘free and fair’ trade regime is shaking and trade retaliation for political purposes is made, we ourselves have no choice but to defend our economy,” President Moon said. Cheong Wa Dae said Hyundai Mobis is the first large-sized Korean company returning home from its overseas presence. The plant in Chungju is being built to replace production from two closed parts plants in China.

When the Ulsan plant is dedicated, Hyundai Motor Group will have a structure in which Hyundai Mobis will develop and mass produce core EV parts and Hyundai Motor and Kia Motors will mass produce EVs with their EV production platforms.

The E-GMP platform is a kind of EV skeleton made up of batteries and motors, designed to dramatically expand space utilization instead of engine room. Hyundai Motor plans to release a high-performance, long-range EV capable of running more than 500 km.

Prof. Sunwoo Myung-ho of Hanyang University Department of Automotive Engineering was quoted as saying, “Tesla is one of the world’s representative brands with a platform success story.” The development of a platform will reduce car unit prices, thus greatly contributing to improving profitability, he said.

Hyundai Motor Builds 5th Global EV Production Center

Hyundai Motor now produces EVs at plants in Korea, China and India. Its plant in the Czech Republic is making preparations to mass produce EVs.

The automaker is to dedicate an EV plant in Indonesia capable of producing 250,000 units annually this year, making the country Hyundai Motor’s fifth EV production center. Hyundai Motor is most likely to see its combined annual production capacity surpass a threshold of 800,000 EVs.

In his New Year’s message, Hyundai Motor Group Executive Vice Chairman Chung Eui-sun revealed a plan to increase the number of eco-friendly car models, including hybrid and hydrogen fuel cell cars, to 44 by 2025, with a target of selling 1.67 million units annually. Out of the total, EVs are forecast to account for more than half or approximately 850,000 units with 23 models. Hyundai Motor aims to rise to top 3 EV maker based on global EV production.

To this end, Hyundai Motor has to build production lines exclusively specializing in EVs. Hyundai Motor plans to convert two of Ulsan plant’s lines for EV production.

Foreign automakers are stepping on the gas to produce EVs. They are pursuing economies of scale to enhance profitability. For instance, Volkswagen and Ford plan to share the modular electric toolkit (MEB). Nine companies, including Toyota of Japan, plan to develop and share EV platforms.