Hyundai Motor Company and Kia Motors, both subsidiaries of Hyundai Motor Group, have made a substantial investment into a UK-based electric startup company called Arrival. The two companies' $110 million investment into Arrival has effectively skyrocketed it into one of Britain's most valuable startup.
Kia and Hyundai's investment into the five-year-old company increases its market value to around $3.4 billion. The two South Korean companies reportedly made the investment to jump-start various collaborative projects that will help them accelerate their efforts in shifting into the electric era.
A company spokesperson of the UK electric firm stated that the infusion of new capital is a big boost for its operations. Arrival currently has around 800 employees across five countries, including in its facilities in the United States, Russia, and Germany.
With the investment, Arrival has managed to position itself as one of the top UK startups. According to a research paper published by CB, only five other UK startups are worth more than $3 billion.
Hyundai's president and chief innovation officer, Youngcho Chi, mentioned in a statement on Thursday that its investment in Arrival is part of its wider open innovation strategy. By partnering with Arrival, Hyundai and Kia will stand to benefit from its technology, while at the same time helping it further innovate.
Last year, Hyundai announced that would be pouring up to $35 billion over the next few years to develop self-driving and electric power train technologies. The company also revealed that it plans to release up to 23 types of EVs by 2025.
Similar to other electric startups, Arrival's main goal is to reduce the overall cost of making electric vehicles so they can become more competitive with their fossil-fuel-burning counterparts. The London-based company mainly focuses on developing innovations in design and manufacturing to achieve its mission.
Arrival currently has two production sites in the UK, which received plans designed by its engineers in separate facilities. The company previously announced plans of launching its first full-electric vehicle later this year. Arrival also stated that it would eventually expand its operations in Asia and other European countries.
One of the company's most noteworthy innovations is its proprietary modular "skateboard" platform, which can accommodate a wide range of vehicle models. The concept is similar to the one being developed by Volkswagen, currently the world's largest carmaker. By using the platform, Arrival and its partner companies can essentially build multiple vehicle models using just one system. This will in effect significantly cut product costs, thereby lowering prices.
