EV News

Kia begins building factory for mass production of electric purpose-built vehicles

Published by
Joshua S. Hill

South Korean automaker Kia has begun construction on a dedicated production plant for battery-electric purpose-built vehicles (PBVs), with mass production of the cars that can be used for delivery, ride-hailing, and other business uses  to begin in 2025.

Just days after the company’s CEO Investor Day which saw the company promise 15 different EV models by 2027 and further plans for its PBV business, Kia held a ground-breaking ceremony at its Hwaseong plant, located in Gyeonggi Province, South Korea.

Kia is planning to invest around one trillion won (around $A1.1 billion) in developing the factory on 99,000 acres of land. With mass production expected to begin in the second half of 2025, Kia is aiming to produce 150,000 units in the first full year of operations, with the potential to expand in line with future market conditions.

One of the innovative manufacturing processes Kia intends to implement at the factory is the “cellular (or cell) method” which will allow vehicles to be produced based on a diverse array of customer demands.

The first PBV in Kia’s model range, the SW, is expected to be debuted in 2025. Set to be a mid-sized PBV and based on the eS platform and will feature a dedicated skateboard platform for battery electric PBVs which will allow for various types of vehicle bodies to be used.

The SW model has been designed specifically for businesses such as delivery, ride-hailing, and business-to-business (B2B) transactions.

Following the launch of the SW, Kia plans to expand its product line-up to include a large-sized PBV that can be used for logistics, fresh food delivery, multi-seat shuttles, and mobile offices and stores. A small-sized PBV and a mid-sized robotaxi fitted with autonomous driving technology are also planned.

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