Hyundai and Kia invest in Arrival to co-develop electric commercial vehicles
Hyundai Motor Company and Kia Motors Corporation announced a strategic investment of €100 million (U.S. $110 million) in a new partnership with Arrival, a UK-based electric vehicle startup.
Through the partnership, Hyundai and Kia plan to introduce competitively priced small and medium-sized electric vans and other products for logistics, on-demand ride-hailing, and shuttle service companies. Arrival’s scalable electric platform can be adapted for multiple vehicle categories and types which Arrival, Hyundai, and Kia will explore for the development of a range of Purpose Built Vehicles (PBV).
Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group, and Denis Sverdlov, Chief Executive Officer of Arrival, signed a contract for investment and the joint development of electric vehicles at the headquarters of Hyundai and Kia in Seoul. Of the total investment, Hyundai will contribute €80 million; Kia €20 million.
“The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations,” said Biermann. “Through the joint development of electric commercial vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market, with Europe at the forefront.”
Hyundai and Kia to use Arrival’s modular, scalable "skateboard" EV platform
Founded in 2015, Arrival has production plants and R&D centers in the U.S., Germany, Tel Aviv, Russia, and the UK. The company has developed a "skateboard" vehicle platform with a modular component structure, which is described as "a cost-effective base which incorporates a battery pack, electric motor, and driveline components."
Fully scalable to accommodate multiple vehicle types, the platform can be used to accelerate vehicle development to meet diverse customer needs. Currently, Arrival is carrying out pilot projects with multiple logistics companies in Europe using cargo vans manufactured with the technology.
PBVs to underpin growth in eco-friendly commercial vehicle sector
Hyundai and Kia recently announced the development of fully electric Purpose Built Vehicles (PBVs). Hyundai presented its PBV concept as one of the smart mobility solutions at CES 2020. At its CEO Investor Day on January 14, Kia also announced its plan to develop PBVs for shared-service companies and logistics companies.
“This investment is part of an open innovation strategy pursued by Hyundai and Kia. We will accelerate investment and cooperation with companies with advanced technology such as Arrival, to respond to the rapidly changing eco-friendly vehicle market,” said Youngcho Chi, President and Chief Innovation Officer at Hyundai Motor Group.
“We are excited to come out of stealth mode with our partnership with Hyundai Motor Group, and our complementary expertise will allow us to rapidly design, build, and roll out vehicles together. Accelerating electric vehicle adoption is good for everyone—for people, business, and the planet and we are pleased to undertake this mission with our partners Hyundai and Kia,” added Avinash Rugoobur, Chief Strategy Officer of Arrival.
The partnership with Arrival enables Hyundai to accelerate its "Two-track" strategy to deliver battery electric and hydrogen fuel-cell solutions for the European commercial vehicle market. To further support that strategy, Hyundai recently established Hyundai Hydrogen Mobility (HHM), a joint venture between Hyundai and Swiss hydrogen energy company H2 Energy. It aims to export 1600 hydrogen fuel-cell trucks to Europe by 2025, following the first export to Europe on January 3 as part of a pilot program.