Hyundai Motor Group will commit 4 trillion won ($2.7 billion) to construct a dedicated electric-vehicle production facility in South Korea, the automaker’s latest effort to anchor manufacturing capacity at home while strengthening ties with local battery suppliers.
The project represents Seoul’s most concrete initiative yet to retain control over the nation’s EV industrial base as global competition intensifies and supply chains fragment. Hyundai, which ranked as the world’s third-largest automaker by volume with 7.23 million vehicles sold in 2024, faces mounting pressure to secure domestic production amid shifting trade policies and China’s expanding market presence.
The facility will serve as what the company terms a “mother plant,” designed to integrate operations with South Korean battery manufacturers including LG Energy Solution, Samsung SDI, and SK On. Those three suppliers collectively hold approximately 30% of the global lithium-ion battery market and have announced plans to invest 20 trillion won through 2030 in advanced battery development.
South Korea’s government has designated the battery supply chain as strategically critical, allocating 7.9 trillion won in 2025 to support the sector through tax incentives and mineral procurement programs. The initiative comes as the nation seeks to maintain its position in an increasingly competitive market where China dominates raw material processing and the United States pursues reshoring strategies through industrial subsidies.
