Hyundai Motor Company announced at the ‘2022 CEO Investor Day’ virtual forum a new strategic roadmap to accelerate its electrification ambition by 2030, which far exceeds the previous plan for 2021-2025.
The South Korean manufacturer would like to gradually expand battery-electric vehicle (BEV) sales to more than 1.87 million annually by 2030 and achieve a 7% share of the global BEV market (36% of the Hyundai/Genesis volume). For reference, the previously announced target was 560,000 BEVs by 2025.
More BEV models
The lineup of all-electric vehicles of the Hyundai Motor Company (Hyundai and Genesis brands) will be significantly expanded. The South Korean manufacturer announced a plan to introduce at least 17 new BEVs by 2030, including 11 Hyundai and 6 Genesis. Please note that the Kia brand comes on top of that (we will cover it in a separate article).
Among the new Hyundai BEVs, there will be:
- three sedan models (including Hyundai Ioniq 6 in 2022)
- six SUVs (including Hyundai Ioniq 7 in 2024)
- one light commercial vehicle
- one new type of model
Among the new Genesis BEVs, there will be:
- two passenger cars
- four SUVs (including the Electrified GV70 launching this year)
Genesis brand will be the first to go all-electric within the group (by 2030) and, starting in 2025, all newly launched models from Genesis will be "electrified."
According to the presentation (1.87 million BEV sales and 17 new models), on average, 110,000 units will be sold per model by 2030, compared to about 20,000 in 2021.
The plan says that "by enhancing competitiveness in hardware and software capabilities with an expanded line-up," BEVs will become very profitable, with 10% or higher operating profit margin. It appears that BEVs are expected to be more profitable than average because on a consolidated basis the target is a 10% operating profit margin.
For reference, the target annual consolidated operating profit margin in 2022 is 5.5-6.5%.
To achieve the plan, Hyundai Motor Company will invest 95.5 trillion KRW ($79 billion) in future business by 2030, including 19.4 trillion KRW ($16 billion) on electrification - "to expand EV production capability, build charging stations and engage in strategic technology alliances."
Expansion of BEV manufacturing capacity
Hyundai Motor Company announced the expansion of all-electric vehicle manufacturing capacity both at existing sites (in Korea and the Czech Republic) and new ones. Under consideration is a new dedicated BEV production facility.
Additionally, the company would like to establish a high-efficiency manufacturing process for BEV production.
BEVs will be produced in Indonesia (in 2022) and, according to previous reports, also in the US.
"Beyond existing BEV production facilities centered in Korea and the Czech Republic, Hyundai plans to gradually expand its BEV manufacturing bases, starting with an Indonesian plant that recently started operation. The Indonesian plant will start BEV production this year to help expand production volume."
Battery supply and next-gen batteries
Hyundai Motor Company announced that it intends to "increase the local procurement rate of batteries through strategic alliances with battery companies in major regions" (including the US). One of the directions is diversification.
According to the press release, a sufficient battery supply is secured through 2023, while by 2030, the Hyundai/Genesis brands will need 170 GWh annually. That would be over 90 kWh on average per battery pack (assuming 1.87 million BEVs).
Hyundai is working with partners on next-generation batteries - more than 50% of the supply of those batteries is expected to be supplied through alliances:
"...Through these alliances, the company expects to obtain more than 50 percent of its next-generation lithium batteries for BEVs starting in 2025."
"In addition, Hyundai will also diversify battery sourcing to consolidate the competitiveness of future BEVs. The company has secured sufficient battery supply to meet its sales targets by 2023. Hyundai plans to continue cooperation with various battery companies with an aim of securing 170 GWh of batteries for its models, including Genesis luxury brand by 2030.
Regarding the next-generation batteries, such as solid-state battery, Hyundai is cooperating with various global partners to improve energy density and cost efficiency."
New Integrated Modular Architecture (IMA) platform
Besides the electric global modular platform (E-GMP), Hyundai intends to launch also an all-new Integrated Modular Architecture (IMA) platform - evolved from e-GMP - that will be introduced in 2025.
According to the press release, the IMA will be a very universal solution for all types of electric vehicles (all segments) and it will standardize not only a chassis but also a battery system and motor.
An interesting thing is that battery systems in the IMA will be cell-to-pack (without modules). It's not a surprise, considering that the group entered into a license agreement with CATL to get access to CATL's battery cell-to-pack (CTP) technology for prismatic cells in October 2021.
The presentation confirms two battery chemistries - NCM (currently used) and LFP (for entry-level BEVs).
In terms of electric drive units, there will be five standardized types of motors for IMA.
"The IMA will be utilized not only to as Hyundai Motor’s passenger BEV platform but also as its exclusive purpose-built vehicle (PBV) platform, helping to streamline production processes and reduce cost."
"The IMA is being developed to standardize not only a chassis but also battery system and motor. The innovative architecture can be used for BEV models in all segments, improving driving range."
"Unlike the existing BEV development system, which has different types of battery packs for each model, IMA can be equipped with standardized battery packs to attach flexibly regardless of the model to improve cost efficiency. Through the cell-to-pack system, the new architecture can secure sufficient energy density and shorten charging time."
"Standardized five type of motors also will be installed on IMA according to model needs. This modular motor system can secure competitiveness in terms of cost and weight as well as motor efficiency."
A separate topic is the upcoming new software architecture "to provide a satisfying ownership experience for customers."
"The company plans to apply an over-the-air (OTA) update to new models that will be launched starting at the end of 2022, and expand it to all Hyundai models by 2025. In addition, the number of integrated control units can be reduced by one-third by 2030."
Hyundai Motor Company new electrification roadmap in brief:
- overall BEV sales: more than 1.87 million annually by 2030
on average, 110,000 sales per model by 2030
- 17 new BEV models (Hyundai and Genesis brands) by 2030:
- Hyundai: 11 new models
three sedan models (including Hyundai Ioniq 6 in 2022)
six SUVs (including Hyundai Ioniq 7 in 2024)
one light commercial vehicle
one new type model
- Genesis: 6 new models
two passenger cars
four SUVs (including the Electrified GV70 launching this year)
- Hyundai: 11 new models
- profitability: at least 10% operating profit margin (BEVs) by 2030
"On a consolidate-basis, company aims to achieve 10% of operating profit margin"
- investment: 95.5 trillion KRW ($79 billion) in future business by 2030, including 19.4 trillion KRW ($16 billion) on electrification and 12 trillion KRW ($9.9 billion) on software capabilities.
- production: expansion of manufacturing capacity
- battery supply: 170 GWh annually required by 2030 (over 90 kWh per BEV, assuming 1.87 million BEVs)
- New platform: Integrated Modular Architecture (IMA) in 2025
with cell-to-pack approach and standardized five type of electric motors