By Kwanwoo Jun

SINGAPORE--Hyundai Motor Co. may produce up to 30,000 electric vehicles annually in Singapore by 2025 as the South Korean company began construction of a research and development center in the city-state, Singapore Prime Minister Lee Hsien Loong said.

EV production fits Singapore's goal of having all vehicles run on cleaner energy by 2040 to help reduce greenhouse gases, Mr. Lee said Tuesday after the groundbreaking ceremony for the 400 million Singapore dollars (US$294.8 million) Hyundai Motor facility.

"EVs have a different supply chain, fewer mechanical parts and more electronics, which plays to Singapore's strengths," Mr. Lee said in a statement.

Hyundai Motor said it plans to complete the facility in Jurong Innovation District in western Singapore by the end of 2022 as a hub for future mobility studies.

The Hyundai Motor Group Innovation Center will have small-scale manufacturing facilities focused on EVs to test a customer-centered manufacturing platform, the company added.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

10-13-20 0254ET