SINGAPORE - SP group and Hyundai Motor Group signed an agreement on Thursday (Nov 12) to accelerate the adoption of electric vehicles in Singapore.

The Temasek investment fund-owned group and the South Korean automotive manufacturer will work together on various initiatives, including the expansion of Singapore's electric vehicle charging infrastructure to make owning an electric car more convenient for motorists.

They will also jointly develop a new business model for battery leasing, which will allow electric vehicle users to lease the car battery instead of owning it. It will be the first such exploration in South-east Asia.

"SP and Hyundai aim to lower the initial cost of purchasing electric vehicles, enhance the accessibility of charging points and build an ecosystem of innovative solutions that can encourage the adoption of electric vehicles in Singapore," the two groups said in a press statement.

SP group chief executive officer Stanley Huang said electric vehicles constitute a key pillar in SP's strategy to help Singapore achieve its sustainability goals.

Singapore aims for the last internal combustion engine car to be sold in 2030 and wants to phase out internal combustion engine vehicles by 2040.

Senior vice-president of Hyundai Motor Group Jung Hong-bum said the group will continue to strengthen its cooperation with various local partners, beginning with this partnership with SP group.

It is currently working closely with local universities such as the Nanyang Technological University, startups and research institutes to create smart city solutions and brainstorm new future business areas.

There are currently about 1,800 charging points in Singapore. The aim is to have more than 28,000 by 2030.