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Hyundai to invest $1.1 billion in Brazil for hydrogen shift

Published: 23 Feb. 2024, 10:04 Updated: 23 Feb. 2024, 17:52

SARAH CHEA
[email protected]

Brazil's President Luiz Inacio Lula da Silva, center, and Euisun Chung, right, Hyundai Motor Group Executive Chair, take a photo with a miniature of Hyundai's N Vision 74, a hydrogen-powered sports concept car, after a meeting on Feb. 22 in Brazil. [GOVERNMENT OF BRAZIL]

Hyundai Motor will invest $1.1 billion in Brazil through 2032 to accelerate its shift to eco-friendly vehicles including hydrogen.

The plan was made during Hyundai Motor Group Executive Chair Euisun Chung's meeting with Brazil's President Luiz Inacio Lula da Silva Thursday in Brazil.

Hyundai Motor Group Executive Chair Euisun Chung, left, talks with Brazil's President Luiz Inacio Lula da Silva during a meeting on Feb. 22 in Brazil. [HYUNDAI MOTOR]

The $1.1 billion will also be used in next-generation mobility technologies like urban air mobility, or air taxis, Chung hinted.

"Hyundai Motor Group aims for mutual growth with Brazil," Chung told to the president. "Hyundai's Brazil plant is known for its safe work conditions and achieved non-conflict wage settlement for 11 consecutive years."

Brazil is the only country in Central and South America where Hyundai has a plant. Its manufacturing plant in Piracicaba, São Paulo, has an annual capacity of 210,000 units. Brazil is the richest country in South America, and the eighth-largest country in automobile production.

Hyundai Motor Group Executive Chair Euisun Chung, second from left, talks with Brazil's President Luiz Inacio Lula da Silva, third from left, and other Brazilian government officials during a meeting on Feb. 22 in Brazil. [HYUNDAI MOTOR]

Hyundai Motor is the No. 4 automaker in the country with 12 percent of the market share as of 2022, with the popularity of the Creta SUV and Brazil-dedicated HB20 mini sedan.

Brazil last year announced a 19 billion Brazilian real ($3.8 billion) incentive plan for automakers that invest in reducing carbon emissions. The country aims to reach carbon neutrality by 2050.

Hyundai plans to introduce the Ioniq 5 and Kona Electric while Kia releases an EV5 in the Brazilian market, though the specific time period has not been decided.

"We are well aware of the Brazilian government's efforts to develop eco-friendly energy sources," Chung said. "Hyundai will actively support it in hydrogen and the eco-friendly mobility area."

Hyundai Motor recently announced it will buy the hydrogen fuel cell business unit from its automotive parts-making affiliate Hyundai Mobis, valued at 217.8 billion won, in an effort to strengthen its hydrogen business.

During CES 2024 in Las Vegas in early January, Hyundai Motor unveiled its HTWO grid, a dedicated hydrogen business brand that secures the whole hydrogen value chain — production, storage, transportation and utilization. Hyundai aims to offtake some 3 million tons of hydrogen annually by 2035.

BY SARAH CHEA [[email protected]]