Hyundai Motor Group Chairman Chung Eui-sun: "Producing green hydrogen and deploying hydrogen trucks"... Accelerating new business in Brazil

"We plan to advance technical cooperation with Brazil on green hydrogen production, hydrogen truck introduction, and SMR (small modular reactors)."

Hyundai Motor Group Chairman Chung Eui-sun made these remarks while attending the "Korea-Brazil Business Round Table" in Sao Paulo, Brazil, on the 28th (local time). Earlier, in 2024, he met with Brazilian President Luiz Inácio Lula da Silva and announced plans to invest a total of $1.1 billion (approximately 1.6 trillion won) in Brazil by 2032. This statement appears to signal the formal launch of related projects. At that time, Jeong (Chairman) cited hydrogen and other eco-friendly initiatives as well as future technologies as investment areas.

Brazil, home to the Amazon rainforest known as the "lungs of the Earth," is actively pursuing carbon reduction policies. Hyundai Motor Group has determined that there are significant business opportunities in the clean energy sector during this process. This is also why Jeong (Chairman) stated at the recent Business Round Table: "We will advance local operations in line with Brazil's decarbonization policy 'MOVER,' the national hydrogen program, and the national energy plan."

Hyundai Motor Group is expected to first build an electrolysis plant in Brazil and produce green hydrogen using local renewable energy facilities. Green hydrogen is produced by splitting water using electricity generated from renewable energy sources. According to a report published last year by the Korea Institute for International Economic Policy, producing green hydrogen requires low renewable energy generation costs. The report noted that northeastern Brazil, with abundant sunlight and strong winds, possesses "optimal conditions." The report further stated that the production cost per kilogram of green hydrogen is second only to the Middle East (2.7 dollars in the United Arab Emirates and 2.9 dollars in Saudi Arabia), with Brazil at 3.2 dollars being the lowest globally. Additionally, the EU (European Union) plans to import 10 million tons of green hydrogen by 2030. Northeastern Brazil's proximity to Europe via nearby ports also makes it advantageous for exports.

The local supply of Hyundai Motor Group's "Xcient Hydrogen Electric Trucks" is also anticipated. The Brazilian government is making efforts to foster a green mobility ecosystem, including introducing the "MOVER" program that applies environmental regulations to both domestic and imported vehicles. In March, Hyundai supplied eight Xcient hydrogen electric trucks for Uruguay's wood logistics decarbonization project, marking its first step into the Latin American market, with plans to gradually expand the scope of countries where these trucks will be deployed.

Efforts are also accelerating to introduce SMRs in Brazil. Hyundai Motor Group is working on securing technology and commercializing SMRs by participating in the design of commercially available SMRs in the United States alongside Holtec International, a U.S. nuclear power specialist company. Two years ago, during a meeting with President Lula, Jeong (Chairman) expressed strong determination to pursue business projects in Brazil, stating: "We hope to explore cooperation opportunities in the SMR field as well."

Meanwhile, Hyundai Motor Group is also carefully considering strategies to expand car sales in Latin American markets such as Brazil and to counter aggressive low-priced electric vehicle attacks from China. HMG Management Research Institute, the group's think tank, recently shared an internal report analyzing why BYD's "Dolphin Mini" model has gained popularity in Brazil. When asked by reporters about the outlook for the Brazilian market at the Business Round Table, Jeong (Chairman) responded: "There is still a long way to go," adding, "China is also aggressively targeting (the local market) these days."