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Hyundai Motor Group will build a battery research and development (R&D) facility in Anseong, Gyeonggi Province, the first time that the South Korean auto giant is setting up a business site in the city.

According to industry sources on Thursday, Hyundai Motor Group is in discussions with Anseong city authorities for a battery R&D center in the Anseong Industrial Complex. The initial investment is estimated to be in the hundreds of billions of won, with the first phase of completion expected around 2027.

The Anseong R&D center will be a facility for researching, developing, and testing electric vehicle batteries using Hyundai Motor Group‘s own technology. The conglomerate plans to expand this location as its fourth major R&D hub, following its Namyang, Mabuk, and Uiwang R&D Centers. Sources note that the move reflects its efforts to internalize battery technology in preparation for the widespread adoption of electric vehicles.

The group plans to design batteries and manufacture test products at the Anseong center and is also considering a “battery fabless” strategy focusing on design specialization in the mid- to long-term. However, a Hyundai Motor Group official said that “we are yet to make any decisions regarding facility expansion.”