On Monday, Hyundai Motor Group announced a 174-megawatt power purchase agreement (PPA) with Spain’s Matrix Renewables. The company’s solar energy project enables it to power its United States EV plant with renewable energy.
The South Korean automaker inked a 15-year PPA with the Matrix Renewables-led Stillhouse Solar Project, operational from 2025 to 2040. Moreover, the energy generated from the facility will likely power the Hyundai Motor Group Metaplant operations in the United States.
Also, the South Korean automaker is currently building its first dedicated EV mass production plant in North America in Georgia.
Yonhap news agency reports that the energy will power Hyundai Mobis’ North American electrification operations and Hyundai Steel’s production plant in Georgia.
Hyundai states that the agreement signed is the biggest PPA by a South Korean firm for renewable energy usage in U.S. sites. However, the company did not disclose any financial terms for the contract.
Hyundai estimates that the deal would lead to an annual reduction in carbon emissions of about 140,000 tonnes. Interestingly, it is approximately equivalent to the carbon emissions produced by around 84,000 midsize sedans in a year.
A Hyundai Motor official stated, “This contract marks a significant step for the group in securing renewable energy power.” Additionally, the official mentioned the group’s commitment to ongoing investment in renewable energy transition for its U.S. facilities.
The South Korean automaker is making significant progress globally in the field of electric vehicles (EVs). Recently, Hyundai and Kia inked an MOU with India’s Exide Energy Solutions Ltd to supply batteries for their EVs.
In addition, with the newly formed partnership, the two automotive giants will be able to locally manufacture electric vehicles in India, gaining a competitive advantage.
Therefore, just like other automotive companies, Hyundai and Kia aim to grow their footprint in India, one of their top revenue-generating markets. The other key markets of South Korean automakers are South Korea, Western Europe and the United States.
