Hyundai & Kia Make An €80 Million Investment In Rimac

Croatia’s Rimac Automobilii, founded by Mate Rimac, is tiny by comparison to most mainstream automakers but it has created some very impressive electric cars. Its forte is advanced battery and control system technology. Its prowess has already attracted a 10% ownership stake from Porsche, which just happens to be part of the Volkswagen Group. So everything Porsche learns from its association with Rimac will trickle down to Audi, SEAT, Ducati, MAN, Scania. Lamborghini, Bugatti, and all the other pieces of the far flung Volkswagen empire.

Now comes word that Hyundai and Kia will invest €80 million in Rimac. According to Electrive, the money will be used to create a strategic partnership for the joint development of high performance battery electric and fuel cell vehicles. The Korean companies plan to have 44 electric models on sale by 2025. Mate Rimac says, “We see a strong investor and technology partner in Hyundai Motor Group and believe that this collaboration will charge the company’s position as a Tier-1 electrification components supplier to the industry.”

“Rimac is an innovative company with outstanding capabilities in high-performance electric vehicles,” says Euisun Chung, deputy chairman of Hyundai Motor Group  Indeed, Rimac has made a name for itself by specializing in electric vehicle technologies and sports cars. Last year Rimac signed a cooperation agreement with Pininfarina — now owned by Mahindra — and the SEAT brand Cupra. It also has partnerships with Aston Martin, Renault, and Koenigsegg.

Rimac’s curriculum vitae consists of its high performance C Two electric two-seater sports car which features 1,408 kW of power and a top speed of 412 km/h. It has a range of 650 kilometers in the NEDC testing cycle and can be charged to 80% SOC within half an hour using a bespoke 250 kW rapid charging system. Its battery technology, electric motor know how, and proprietary charging systems are what all those companies are paying for.

In prior decades, car companies would rather commit hara kiri than ask another company for help. But the electric car era is forcing companies to collaborate in ways never thought possible. Don’t be surprised if that collaborative spirit leads to unprecedented consolidation in the industry. Some mainstream manufacturers are bound to get left behind gasping for breath on the side of the road. The odds are good that some high profile US manufacturers will be part of that group while forward thinking companies like Hyundai and Kia thrive.