Hyundai Motor Company Declares 'Carbon Neutrality' by 2045

Increase in Electric Vehicles + Hydrogen Electric Vehicles Share
Green Hydrogen and Renewable Energy Share 'Soars'

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor Company has declared its goal to achieve carbon neutrality by 2045. The company plans to increase the proportion of electric vehicles and hydrogen fuel cell vehicles in key markets, while accelerating the era of net-zero carbon emissions through new mobility services and the use of renewable energy and green hydrogen.

On the 6th (local time), at the 'IAA Mobility 2021' press conference held in Munich, Germany, Hyundai Motor unveiled a blueprint to achieve net-zero carbon emissions throughout all stages?from vehicle production to operation and disposal. Net emissions refer to the actual emissions after subtracting the amount removed or absorbed from the total emissions.

Jang Jae-hoon, President of Hyundai Motor, stated at the IAA press conference, "Climate change is an undeniable reality and a pressing challenge that humanity must urgently address," adding, "We will achieve carbon neutrality across our products and business by 2045 and intensify investments in eco-friendly mobility and energy solutions for a more sustainable future."

Specifically, Hyundai plans to reduce carbon emissions from vehicle operation, supply chains (partners), and business sites (factories) by 75% compared to 2019 levels by 2040. Additionally, by introducing carbon capture, utilization, and storage (CCUS) technologies, the company aims to achieve net-zero actual emissions by 2045.

Acceleration of Electrification: Full Electrification of All Models in Europe by 2035

The core of Hyundai’s 2045 carbon neutrality vision is an integrated climate change solution based on three pillars: ▲Clean Mobility ▲Next-generation Platform ▲Green Energy.

First, to reduce emissions during the vehicle operation phase?which accounts for over 80% of total carbon emissions?Hyundai will accelerate the transition to electrification in its products and business structure. The company aims to increase the share of electrified models among all vehicles sold worldwide to 30% by 2030 and 80% by 2040.

Regionally, Hyundai plans to make all models sold in the European market battery electric vehicles (BEVs) or hydrogen fuel cell vehicles (FCEVs) by 2035, and sequentially complete electrification of all sales vehicles in other major markets by 2040. The company explains that this schedule advances and concretizes its existing plan to electrify the entire lineup in key markets by 2040.

Genesis, which has already committed to converting all models to hydrogen and battery electric vehicles by 2030, will also support Hyundai’s full electrification push.

In particular, hydrogen fuel cell vehicles and fuel cell systems will play a pivotal role in helping Hyundai move closer to its carbon neutrality goal.

Hyundai plans to expand its hydrogen fuel cell electric vehicle RV lineup from one model to three. In the second half of 2023, it will launch the facelifted Nexo and a hydrogen fuel cell variant derived from the multipurpose vehicle (MPV) Staria, followed by consideration of a large SUV model after 2025.

Moreover, Hyundai intends to gradually expand the adoption of hydrogen fuel cell systems beyond the automotive sector in the mid to long term, contributing to the growth of the hydrogen ecosystem.

Launch of Next-generation Mobility Platform

On the same day, Hyundai publicly unveiled the actual robo-taxi developed jointly with Motional, based on the dedicated electric vehicle model Ioniq 5, for the first time. Hyundai has selected the robo-taxi, which combines electrification and autonomous driving technologies, as a representative next-generation mobility platform to drive its carbon neutrality vision. The strategy aims to fundamentally change how people experience automobiles and promote sustainable lifestyles through the spread of more eco-friendly and safer robo-taxis.

From an urban environmental perspective, robo-taxis consume less energy and can alleviate traffic congestion through efficient operation. Hyundai believes this will ultimately contribute to building a more sustainable transportation network and reducing greenhouse gas emissions.

The company explains that electrifying fleet vehicles?vehicles supplied in large quantities to corporations, such as robo-taxis?is important because it can reduce carbon dioxide emissions more quickly and steadily than individual consumers purchasing and driving electric vehicles.

Hyundai plans to supply fully autonomous Ioniq 5 robo-taxis to the global ride-sharing company Lyft in 2023 through Motional.

Earlier, Hyundai announced that the Ioniq 5 robo-taxi received Level 4 autonomous driving technology certification from the Society of Automotive Engineers (SAE) in the United States. Level 4 means the vehicle’s automated system can perceive and make decisions in various situations and handle emergencies without driver intervention.

In addition to robo-taxis, Hyundai plans to develop and commercialize various eco-friendly next-generation mobility platforms such as Urban Air Mobility (UAM). The company aims to launch an electrified UAM for urban operations by 2028 and a product connecting adjacent cities by 2030.

Hyun Jeong-eun, Chairman of Hyundai Motor Group, emphasized the importance of the UAM business during a dialogue with employees in 2019, stating, "50% of the group’s future business will be automobiles, 30% UAM, and 20% robotics."

Renewable Energy and Green Hydrogen

The third pillar for achieving carbon neutrality by 2045 is 'Green Energy.' Hyundai will intensify efforts to reduce greenhouse gas emissions, including carbon, generated during manufacturing processes by increasing the use of renewable energy such as solar and wind power.

The company aims to meet over 90% of the electricity demand at its global business sites with renewable energy by 2040 and 100% by 2045. Among these, the Czech plant is expected to complete the transition to renewable energy first in 2022.

This goal aligns with Hyundai’s participation announced in July in the 'RE100' campaign, which aims to replace 100% of the electricity used at global business sites with renewable energy by 2050.

Furthermore, Hyundai plans to collaborate on the production of 'green hydrogen,' considered the ultimate eco-friendly energy source with zero greenhouse gas emissions during production, and use it as a primary energy source at its business sites in the future.

Hyundai’s envisioned green energy solutions also include long-term investments and commercialization of energy technologies such as Vehicle to Grid (V2G) and Second Life Battery Energy Storage Systems (SLBESS), which reuse electric vehicle batteries.

Hyundai believes that by reducing fossil fuel energy demand and enabling stable storage, supply, and use of renewable energy, these technologies can contribute to greenhouse gas reduction and is actively investing in them.

To implement V2G functionality in upcoming electric vehicle models, Hyundai is conducting pilot and demonstration projects with various external partners. In the SLBESS field, the company is pursuing diverse joint developments and continuously seeking comprehensive cooperation to pioneer new businesses. Demonstration projects will begin in Germany next year.

Meanwhile, during IAA Mobility 2021, Hyundai is operating a 500m2 (approximately 160 pyeong) exhibition hall. It showcases the concept car 'Prophecy,' the second dedicated electric vehicle Ioniq 6 to be launched in the future, and previews the silhouette of a large SUV concept under the Ioniq brand scheduled for release in the second half of the year, introducing clean mobility solutions centered on electrified vehicles.

The Ioniq 5 robo-taxi is also being publicly displayed for the first time at this exhibition, expected to demonstrate its potential as an organic mobility platform within the carbon neutrality ecosystem.

Additionally, at the center of the exhibition hall, a 'Hydrogen Society Centerpiece' art installation artistically represents the entire hydrogen value chain?from eco-friendly hydrogen generation to storage, transportation, and use?welcoming visitors.

Hyundai plans to release a detailed 'Carbon Neutrality White Paper' outlining its roadmap to realize carbon neutrality on the company website on the 7th.

This content was produced with the assistance of AI translation services.