Hyundai Motor to Invest $6.1 Billion in AI and Robotics Center in South Korea

Hyundai Motor Group has finalized a $6.1 billion agreement to develop an innovation hub in South Korea, focusing on artificial intelligence and robotics technologies.

The automaker, which markets vehicles under the Hyundai, Kia, and Genesis brands, announced a deal worth 9 trillion won with the South Korean government and Jeollabuk-do Province, with construction scheduled to commence later this year.

The hub will be situated in the Seomangeum area of Gunsan, a well-connected port city with a population exceeding 250,000, located approximately 110 miles southwest of the capital, Seoul.

Hyundai has identified five key sectors, aiming to play a pivotal role in reshaping the nation's industrial landscape.

The flagship project, representing the largest investment of $4 billion, involves establishing AI data center infrastructure designed to handle massive datasets required for autonomous driving and robotics.

The company has openly expressed its ambition to lead global automated transportation development. After years of testing proprietary technology vehicles in Korea and committing to the Next-Generation Urban Mobility Alliance project aimed at an autonomous-centric future mobility ecosystem, it has also partnered with US firms Waymo and Avride to develop robotaxis.

Key functionalities of the AI data center include 50,000 GPUs, storage for model learning and training, software-defined vehicle development, and the implementation of smart factories. Construction is planned to start in 2027 and finish in 2029.

The second component of the Gunsan center is a robotics manufacturing cluster, for which Hyundai has allocated a budget of approximately $277 million. Earlier this year at CES, Hyundai showcased a detailed vision of its robotics roadmap, following the announcement of the mass production version of the upcoming MobED mobile robot.

Scheduled for completion in 2029, the cluster will include a foundry, a parts supply zone, and a robotics application center for training and validation. Hyundai states it will eventually be capable of assembling 30,000 robots annually using its autonomous manufacturing tools.

Other elements of the new innovation center include a proton exchange membrane electrolyzer plant for producing clean hydrogen—a crucial part of Hyundai's future—with a commitment of $694 million; solar infrastructure construction around $902 million; and AI or hydrogen smart city development totaling $277 million, which the company had previously demonstrated in concept form.

This initiative is part of Hyundai Motor's broader plan to invest $85 billion domestically by 2030, expected to generate an economic impact of $11 billion while creating approximately 71,000 jobs.

Jaehoon Chang, Vice Chairman of Hyundai Motor Group's automotive division, stated in a release: The project we are building in Saemangeum will not only reshape a region but also transform the industrial future of Korea. Hyundai Motor Group combines manufacturing excellence, AI capabilities, and hydrogen expertise to create a truly advanced industrial ecosystem.