Hyundai to invest $730 million to build Tesla-like 'hypercasting' factory in Ulsan

Industry

Published: 24 Apr. 2024, 09:22 Updated: 24 Apr. 2024, 16:36

Hyundai to invest $730 million to build Tesla-like 'hypercasting' factory in Ulsan

Hyundai Motor CEO Lee Dong-seock, right, and Ulsan Mayor Kim Doo-gyum, center, take a photo after signing an agreement to build a hypercasting factory in Ulsan on Wednesday. [HYUNDAI MOTOR]

Hyundai Motor will invest 1 trillion won ($730 million) to build a "hypercasting" factory in Ulsan, adopting a cost-effective EV production method widely used by Tesla.

The Korean automaker and the Ulsan Metropolitan Government signed a memorandum of understanding Wednesday, committing to the construction of the plant on a 70,000-square-meter (753,000-square-feet) site at the company's manufacturing facility in Ulsan.

Ground will be broken in July, with mass-production slated for 2026.

Hypercasting is a method of injecting molten aluminum alloy into molds to shape the vehicle’s frame using an ultra-large press that can apply a force of 6,000 to 9,000 tons. Tesla first implemented "Giga Casting" in 2020 at its factory in Fremont, California, and later in its plants in China and Germany.

This method has proven to be more cost-effective compared to the traditional approach, which is labor-intensive and involves drilling thousands of holes into nearly 70 steel plates that are then individually welded.

Tesla reportedly incurs a cost reduction of approximately 30 percent using this method, as well as increased production speed.

"With the latest hypercasting facility, Hyundai Motor's Ulsan plant will lead innovation in manufacturing to dominate the global EV market," said Hyundai Motor CEO Lee Dong-seock.

The automaker is currently building a $1.5 billion EV-dedicated factory in Ulsan, its first domestic automotive manufacturing plant in 29 years after the last factory that was built in Asan, South Chungcheong, in 1996.

The Ulsan EV plant will start operations in early 2026 with an annual capacity of 200,000 units. The Genesis GV90, its biggest electric SUV, will be produced there.

BY SARAH CHEA [chea.sarah@joongang.co.kr]