Affordable EVs are on the way. Hyundai plans to launch a cheaper electric vehicle, the IONIQ 2, that will sit below the popular IONIQ 5 SUV.
Hyundai is doubling down on its plans to become a top three EV maker by 2030. The Hyundai Motor Group (including Kia) plans to sell 3.6 million EVs by the end of the decade.
The automaker is off to a strong start with its first batch of dedicated EVs, including the IONIQ 5 and IONIQ 6.
Hyundai hit a new export record last month, driven by surging demand for EVs. The company says its EVs are “playing a major role” in helping them secure leadership in the global electric vehicle market.
The automaker’s EV exports have doubled over the past two years, reaching over 218,000 in 2022. However, Hyundai aims to take it a step further with key new models.
Hyundai to launch cheaper IONIQ 2 electric car
We already know Hyundai is developing its first three-row electric SUV. The Hyundai IONIQ 7 was spotted testing last month, revealing the big body electric SUV. It’s expected to officially debut next year.
According to Hyundai Europe’s VP of marketing, Andreas-Christoph Hofmann, the brand is developing a cheaper IONIQ 2 electric car.
Hofmann broke the news this summer following rival Volkswagen unveiling its ID 2all concept. The VW ID 2all will start at around €25,000 ($27,000) with up to 450 km (279 mi) range. It’s expected to go into production in 2025.
Hyundai is aiming for a similar price for the upcoming IONIQ 2. Hofmann told Automotive News, “Everybody in the industry knows the target of this kind of vehicle is 20,000 euros.”
The new EV is expected to have at least 250 miles range. It will be a part of Hyundai’s next-gen IMA platform revealed during its 2023 investor day. Hyundai says the IMA “is a significant advancement” over its current (E-GMP) platform that will help reduce costs.
Hyundai’s IMA will power 13 new Hyundai, Kia, and Genesis EVs through 2030. The platform can be used for “nearly all vehicle classes, ranging from small and large SUVs to pickup trucks.” It will also be used for a new flagship Genesis model.
Electrek’s Take
Hyundai is one of many automakers aiming to launch cheaper EVs over the next few years. Tesla, Volkswagen, GM, Nissan, Stellantis, and more are all planning to release lower-priced EVs. Even startups, including Rivian and Lucid, are moving to lower-priced models.
Raw material costs are already down significantly over the past year or so and are projected to continue falling as more production comes online.
Lithium-ion battery pack prices hit a record low of $139/kWh last month, down 14%, according to BloombergNEF research.
Automakers continue adopting new tech and lower-cost battery chemistries like LFP. Other key battery minerals like lithium, nickel, and cobalt are expected to continue easing in 2024. This should help continue driving EV prices lower over the next several years.
Lower battery prices combined with improved manufacturing practices and designs to boost efficiency are expected to ease costs. BloombergNEF projects battery prices will fall to $113/kWh in 2025 and $80/kWh in 2030.
Meanwhile, Hyundai is already developing affordable EVs. It announced the new 2024 Kona Electric will be one of the most affordable EVs in the US, with starting prices under $33,000.
In a move that’s expected to play a crucial role in supporting the transition to medium- and heavy-duty electric vehicles, $100 million of the Biden Administration’s last-minute $635M payout is headed to Illinois to help build out an electric truck charging corridor.
Tesla is understood to have requested fully 40% of the $100MM award, with Prologis requesting $60 million, Gage Zero requesting $16 million, and Pilot requesting $10 million.
The project will facilitate the construction of 345 electric truck charging ports and pull-through truck charging stalls across 14 sites throughout Illinois, with each of the awarded companies putting up some of its own money to support the infrastructure buildout as well. To that end, Prologis is expected to invest $18 million, Tesla $19 million, Gage Zero $4 million, and Pilot travel stations committing $2.5 million.
“Most of the development has happened on the coasts, and there’s nothing really happening in the Midwest, which is not great for long-haul trucking,” said Megha Lakhchaura, Illinois’ state EV officer. “We think that this hub could be of national importance.”
The California Air Resource Board (CARB) has withdrawn its request to enact the proposed Advanced Clean Fleets rule, which required fleets that are “well-suited for electrification” to reduce emissions through the phase-in of Zero-Emission Vehicles (ZEVs) and the banning of commercial diesel sales after 2035.
“Frankly, given that the Trump administration has not been publicly supportive of some of the strategies that we have deployed in these regulations, we thought it would be prudent to pull back and consider our options,” CARB chair Liane Randolph said in an interview. “The withdrawal is an important step given the uncertainty presented by the incoming administration that previously attacked California’s programs to protect public health and the climate and has said will continue to oppose those programs.”
Here’s hoping the BEVs and ZEVs have better luck next round.
Electrek’s Take
While some may celebrate the delay of the Advanced Clean Fleets rule, their celebrations will undoubtedly prove to be myopic and short-lived. The reality is that America is no longer the world leader in technology or transportation that backward organizations like the American Trucking Association believe it to be, and the fact is that delaying a transition to cleaner, more efficient technology will only put the US further behind its economic rivals in Asia and the Middle East.
Even before this Pyrrhic victory for American truck brands that have been slow to push BEVs into production, demand for diesel was at a generational low, and companies like Volvo, Renault, and Mercedes-Benz have been logging millions of electric miles on their deployed trucking fleets.
All of which is to say: if you thought it was going to be hard for American brands to catch up before, it’s going to be even harder now.
In an official announcement released at 8:15PM last night, Walmart-backed electric van company Canoo filed a voluntary petition for relief under Chapter 7 of the US Bankruptcy Code and will cease operations immediately.
“We would like to thank the company’s employees for their dedication and hard work,” said Tony Aquila, Canoo CEO and one of the company’s largest investors (according to the press release). “We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (‘USPS’), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”
As a result of the chapter 7 filing, Canoo will cease operations effective immediately, 8:15PM on 17JAN2025. The next step in the company’s dissolution will see a court-appointed trustee manage the liquidation of the company’s remaining assets.
Electrek’s Take
Rumors fueled by outspoken former employees of Canoo began circling late last year, with furloughed employees urging Oklahoma state leaders to “hold the electric vehicle company accountable” after it shuttered the OK production line that had received more than $100 million in state incentives.
The same employee claims that the company was being wildly mismanaged, and that what few Canoo vehicles the company said it had built in the Oklahoma plant were actually built in Texas, and that no vehicles were actually ever built in OK. “Nothing was functioning,” the unnamed employee said, speaking to local news channel KFOR. “There was no, there was not one robotics line that actually worked to fabricate a part.”
You could argue that the employees should also be held accountable for happily collecting paychecks without actually producing anything this whole time, but that’s a conversation for another day. For now, I’ll be mourning the loss of what could have been a fun little domestic off-roader, and hoping Canoo’s employees find a soft landing and better jobs elsewhere.