Hyundai and Kia invest £60 million in Croatian firm as part of a collaboration on electric and fuel cell machines

The Hyundai Motor Group has invested €80 million (£60m) in Croatian electric hypercar firm Rimac, as part of a new technical partnership that will involve the two firms developing two high-performance Evs by 2020.

Under the agreement, Hyundai and Kia will collaborate with Rimac to produce a full electric version of the forthcoming ‘midship’ sports car from Hyundai’s N performance division, and a high-performance fuel cell vehicle.

The Hyundai Motor Group has investested heavily in hydrogen fuel cell technology alongside its full electric development plans, believing the technology can be a viable alternative to full EVs for low carbon emission vehicles. It is aiming to expand its fuel cell production facilities to produce 700,000 units per year, and a high-performance fuel cell car could help to showcase the potential of the technology.

The £80m investment is split across Hyundai, which has invested €64m (£54.7m), and Kia, which will invest €16m (£13.7m). Hyundai says the deal will help accelerate its electrification plans, and position the firm “as a global leader in driving this change in the industry”.

Hyundai Motor Group vice-president Euisun Chung said Rimac’s “start-up roots and abundant experience collaborating with automakers combined with technological prowess” made it “the ideal partner.

The release did not disclose if Hyundai’s investment gave it a stake in Rimac ownership.

Last year, Porsche acquired a 10% stake in Rimac for an undisclosed sum, with that deal part of a plan to incorporate Rimac’s electric powertrain technology in future models. Rimac has also supplied technology to other firms, including Pininfarina for its Battista hypercar. 

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14 May 2019

This is interesting, I'd like a little more from Autocar here when there's been time to digest the press release. I had assumed Rimac to be one of those here-today, gone-tomorrow companies known best for making the blandly attractive Concept One that Richard Hammond crashed. But for Porsche to make an investment and now Hyundai-Kia indicates that they have more substance.

Cropley did a nice piece on Britain's RML recently but so that we don't get too xenophobic in this Brexit hysteria I'd be keen to know what is happening in other companies like this one in Croatia. Specifically, I wonder why a JLR goes it alone when similar-sized (but obviously way more profitable) Porsche seeks to invest in a company like Rimac.

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