Hyundai, Peak Energy Launch Platform to Expand Renewable Energy in Automotive Supply Chain

Singapore-based renewable energy developer Peak Energy and Hyundai Motor Securities announced the launch of HMS-Peak Energy, a new joint venture aimed at expanding renewable energy solutions and supporting the decarbonization of the automotive supply chain in South Korea.

According to the companies, the new joint venture will help domestic OEM suppliers reduce exposure to electricity price volatility, improve long-term visibility into energy costs and strengthen manufacturing competitiveness, while supporting the decarbonization of Hyundai Motor’s supply chain.

The companies said that the launch of the new initiative comes at a time of rising uncertainty in export markets, growing global trade risk, and mounting margin pressure. According to the companies, the growing cost competitiveness of solar power is making long-term renewable energy supply an increasingly important factor for manufacturers with significant electricity requirements.

Gavin Adda, CEO of Peak Energy, said:

“Industrial competitiveness is now increasingly tied to the price of electricity. Hyundai Motor Securities recognized this early and moved quickly. This joint venture offers Korea’s OEM suppliers a clear path to gaining long-term visibility into power costs through solar PPAs, while advancing the decarbonization of the supply chain.”

The new platform will focus on energy-intensive suppliers in Hyundai Motor’s automotive supply chain, which are significant contributors to the company’s Scope 3 emissions. The platform will develop, finance, construct and operate renewable energy projects, providing suppliers with access to solar power through long-term PPAs aimed at reducing emissions and stabilizing electricity costs, the companies said.

According to the companies, the JV aims to secure 100 MW of industrial rooftop solar capacity over the next two years. The planned deployment could span several hundred supplier sites across South Korea, with the potential to avoid approximately 55,000 tonnes of CO₂ emissions annually, or more than 1 million tonnes over the lifetime of the assets.

The companies said that the joint venture has already secured five projects with major Tier-1 suppliers to Hyundai Motor, with the projects targeting suppliers producing key automotive components and structured to provide competitively priced electricity.

A Hyundai Motor Securities’ Infrastructure Investment Division representative said:

“This collaboration marks an important first step toward supporting the automotive supply chain’s practical transition to renewable energy. Through our joint venture with Peak Energy, Hyundai Motor Securities plans to combine competitive financing structures with strong project execution capabilities, enabling domestic suppliers to adopt solar PPAs in a reliable and sustainable manner.”