Hyundai Motor Company is making significant strides towards a cleaner future. The company recently announced the largest renewable energy supply contract in South Korea. This groundbreaking agreement, made in collaboration with Hyundai Engineering & Construction, SK E&S, GS E&R, and Enlighten, will provide the automaker with an impressive 610 GWh of renewable energy annually over the next two decades. This is enough power to fully charge the all-electric IONIQ 5 SUV more than 7 million times.
Energy Contract and Sustainability
The new power purchase agreement (PPA) will have a considerable impact on Hyundai’s environmental footprint. They anticipate reductions in greenhouse gas emissions by approximately 5.6 million tons. A spokesperson for Hyundai stated that, in addition to this PPA, the company aims to create a diverse renewable energy portfolio. Their goal is to convert 100% of the electricity used at all domestic and international business sites to renewable sources by 2045, further solidifying their commitment to carbon reduction.
Hyundai’s efforts don’t stop with this agreement. The automaker plans to enhance solar power generation across its operations in South Korea. In 2024, Hyundai has already established 20 MW of solar power generation and will add an additional 11 MW in Ulsan, where it is completing construction of its first dedicated electric vehicle plant. These initiatives are part of a broader strategy to ensure a stable and sustainable energy supply for their manufacturing operations.
Global Expansion
Hyundai is also taking significant steps in its global operations. The company’s plants in the Czech Republic and Indonesia are already utilizing 100% renewable energy, and plans are underway to secure similar arrangements for its facilities in the U.S., India, and Turkey. By next year, Hyundai aims to purchase all electricity for these plants from renewable sources through additional PPAs.
As Hyundai continues its journey towards sustainability, it kicked off production at its new Metaplant America in Georgia this month. The upgraded 2025 IONIQ 5, featuring extended range and sleek design, benefits from this commitment to eco-friendly energy sources. It includes compatibility with Tesla’s Supercharger network. The future of Hyundai’s production is not only about electric vehicles but also about ensuring that company produced these vehicles using clean energy.
