Mubadala and Hyundai team up to explore smart mobility opportunities

Companies plan to jointly invest in green steel and aluminium production, advanced air mobility and electric vehicle infrastructure

Waleed Al Muhairi, right, deputy group chief executive of Mubadala, and Jaehoon Chang, president and chief executive of Hyundai Motor, sign the agreement. Photo: Mubadala
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Abu Dhabi's sovereign investor Mubadala Investment Company has teamed up with South Korea's Hyundai Motor to explore business opportunities centred on future mobility, as the two companies continue to boost their global portfolio in sustainable technology.

The partnership will allow joint investments in key industries, including hydrogen, green steel and aluminium production and recycling, advanced air mobility and infrastructure for electric vehicles, the companies said on Friday.

An initial agreement was signed in Abu Dhabi by Waleed Al Muhairi, deputy group chief executive of Mubadala, and Jaehoon Chang, president and chief executive of Hyundai Motor.

The partnership “marks the beginning of a strategic collaboration that will drive progress in future mobility and clean technologies”, it said.

“This strategic partnership with Hyundai Motor marks a significant milestone in our journey to further diversify our portfolio across sectors that are shaping the future of the global economy such as mobility, green technology and energy,” Mr Al Muhairi said.

Smart mobility is the integration of advanced technology and data-driven solutions to create efficient, sustainable and user-centric transport systems.

The global smart mobility sector is projected to expand at a compound annual growth rate of more than 21 per cent to about $404 billion by 2032, from $48.54 billion in 2022, according to data from Spherical Insights & Consulting.

The Mubadala-Hyundai partnership also aligns with the recently formed Smart and Autonomous Vehicles Industry (Savi) cluster at Masdar City, which aims to develop smart and self-driving vehicles for air, land and sea use.

“This collaboration capitalises on the organic synergy between Hyundai Motor's eco-friendly and futuristic business strategies and Mubadala's investment portfolio,” Mr Chang said.

“Hyundai Motor will continue to pursue diverse partnerships to achieve a sustainable future and contribute to the global energy transition.”

Mubadala, which invests on behalf of the Abu Dhabi government, is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.

It is focusing on boosting its investments in Asia, group chief executive Khaldoon Al Mubarak said earlier this month.

On Wednesday, Mubadala announced a partnership with Aldar Properties and US alternative investment manager Ares Management to jointly invest $1 billion in a new European private real estate credit platform, in which it will lead with a $500 million commitment.

Updated: December 15, 2023, 5:44 PM