ULSAN, South Korea – Hyundai Motor Co. is on track to complete a new battery-electric vehicle plant here by the end of the year, in spite of a projected cooling in the BEV market in the U.S. due to tariffs, the forthcoming cancellation of a U.S. federal EV tax credit, as well as growing market share outside the U.S. for Chinese BEVs.
The automaker broke ground in November 2023 on the facility, where it is investing KRW 2 trillion (which was $1.53 billion at that time) for Hyundai's first new vehicle-assembly plant in South Korea since the Asan plant opened in 1996.
In addition to featuring innovative robotics, smart logistics systems and AI to improve the working environment, the Ulsan BEV plant will introduce a flexible production system to diversify vehicle models. This, per Hyundai, will help it respond to global market changes, such as a slowdown in BEV demand in a particular region. The automaker also expects to see improved productivity and quality via the flexible system.
Ulsan, 294 miles (473 km) from Seoul, is home to the world’s largest single vehicle-assembly plant complex, established by Hyundai in 1968 to assemble the Ford Cortina, marking Hyundai's first foray into vehicle manufacturing. Hyundai then used the complex to develop and manufacture its own vehicles, including the Pony, starting in 1975.
Today, the plant manufactures 1.5 million vehicles annually, with daily production of 5,600 vehicles.
The facility includes five factories with two assembly lines each which produce 18 models. The complex covers 1,200 acres (486 ha). It includes a large shipping dock which facilitates export to 200 countries globally. The new BEV plant will be Ulsan's sixth vehicle-assembly plant at the site.
The No.1 recipient of Ulsan’s output is the U.S., which received 500,000 vehicles in 2024, Hyundai says. Canada is the Ulsan port’s second-largest market while the European Union is third.
Up to 60 ships depart each month from the Ulsan harbor to ports worldwide. It takes 10 hours to fill a ship, some of which can hold up to 6,000 vehicles. The journey from South Korea to San Diego spans 20 days.
Stoppages Not Indicator of Falling Commitment
Hyundai aims to be a “smart mobility solution provider” and one of the factors is optimization of global BEV production, thus the new plant. Hyundai is in pursuit of achieving carbon neutrality by 2045. From 2035, all new Hyundai- and Kia-brand vehicles sold in Europe are to be either battery-electric or fuel-cell electric vehicles.
In the U.S. in 2024, Hyundai, Kia and Genesis BEV models collectively tallied roughly 123,000 units, making Hyundai the No.2 automaker in the U.S. in BEV sales, behind Tesla but ahead of General Motors and Ford Motor.
A new trade agreement between the U.S. and South Korea has introduced a 15% import tariff on automobiles, effective July 31, but despite the added costs of doing business there, the U.S. market remains important to Hyundai, the company says.
This year there reportedly has been four stoppages of current BEV production at Ulsan Plant 1. But that doesn’t deter the automaker’s commitment to the new factory, according to a spokeswoman.
“We remain committed to leading this shift by delivering the highest quality EVs to exceed our customers’ expectations and see full electrification as a significant opportunity for long-term growth,” the spokeswoman tells WardsAuto.
“This is why we’re investing in advanced manufacturing technology at facilities including our EV-dedicated Ulsan plant, and Hyundai Motor Group Metaplant America (producing BEVs and hybrids) in Savannah, GA,” she adds. “Hyundai Motor has seen some of the fastest growth in EV and hybrid sales across the industry and will continue to offer customers a choice of hybrids, plug-in hybrids and internal-combustion engines alongside its EV lineup.”
An electric SUV from Hyundai’s luxury brand, Genesis, will be the first model to be produced at the new Ulsan BEV plant, which will form part of the 548,000 sq.-m site (5.9 million sq.-ft).
Although capacity is 200,000 units annually for worldwide distribution, the spokeswoman declines to specify at what output level the new BEV plant will be running when it starts up in Q1 2026.
The Hyundai branch of the Korean Metal Workers' employee union proposed last spring the addition of hybrids to the new Ulsan BEV plant, to soften any impact from declining BEV sales. However, the company thus far has not publicly deviated from plans for all-electric production at the new Ulsan facility.
Hyundai is expanding its electrified lineup with the introduction of new extended-range electric vehicle (EREV) technology, debuting in 2026, the spokeswoman says, acknowledging the automaker is invested in all forms of propulsion.
“Combining EV performance with quick refueling and the range flexibility of an ICE vehicle, our first EREV will be able to travel more than 559 miles (900 km) when fully charged and serves as a vital bridge to full electrification,” she says. “It’s a key part of our ‘Hyundai Way’ strategy to stay flexible and agile, advancing electrification and meeting our consumers' evolving needs.”
Hyundai is a longtime player in the BEV game. The company initiated its electric-vehicle research in 1990. By November 1991, the first passenger BEV in Korea was developed, using a Sonata body. The vehicle underwent testing at the Ulsan proving ground, which coincidentally is also the site of the new BEV plant.
The proving ground was first used in the 1980s, when the company was actively seeking to expand into overseas markets, developing vehicles that could withstand the diverse terrains and harsh climates found around the world.
