Hyundai Establishes Chinese Electric Vehicle and Battery Business

Shanghai, 18 February - Hyundai Motor Group has announced the establishment of its first joint venture with the Shanghai municipal government and two automakers in China, aimed at developing pure electric vehicle technology.

The new company, owned by Hyundai in a 100% stake, will focus on the development and production of pure electric vehicles and battery technologies. With an initial investment of approximately $107 billion, the firm aims to utilize Shanghai's advanced industrial infrastructure, logistics network, and talent pool to develop its product line.

Participating in China's green low-carbon development plans, Hyundai signed a cooperation agreement with the Shanghai municipal government last year to establish a new electric vehicle company. The partnership includes fellow automakers like Chery Automobile Group Corporation and Guangqi Automobile Group, which will collaborate on logistics networks, supply chain partnerships, hydrogen energy, intelligent autonomous driving, and battery recycling technologies.

The joint venture, which began operations on 2 February, hopes to make significant contributions to China's green low-carbon development plans by creating a comprehensive ecosystem of innovation. It is expected to begin production of the Lexus Pure electric vehicle brand in 2027.