Hyundai Motor (OTC:HYMTF) Co, on Monday, began construction of a 2 trillion won ($1.52 billion) facility in South Korea exclusively designed for the production of electric vehicles (EVs).
The move reflects the automaker's strategic pivot away from traditional gas powered cars.
Hyundai Motor, ranked as the world's third-largest automaker by sales, alongside its affiliate Kia Corp, aims to commence large-scale production at the plant in the first quarter of 2026, with the construction anticipated to be completed by 2025.
The factory will be located in Ulsan in the southeast and is designed to produce 200,000 units annually.
"I trust Ulsan will be an innovative mobility city that leads the way in the era of electrification," Hyundai’s Executive Chair, Euisun Chung said at the groundbreaking ceremony.
Hyundai also announced that the inaugural model from this facility will be an electric sport utility vehicle (SUV) from its upscale brand, Genesis.
Hyundai Motor Group, made up of Hyundai Motor, Kia, and the luxury Genesis brand, revealed a bold plan in April to introduce 31 EV models by the year 2030.