The Hyundai N performance skunkworks is close to signing off on development of the Ioniq 5 N. Hyundai announced on Thursday that the debut will take place in July.

The Ioniq 5 N is not only destined to be the first electric vehicle from Hyundai N, but also the division's first vehicle with all-wheel drive, in this case formed by a dual-motor powertrain. All previous Hyundai N road cars have featured front-wheel drive.

Hyundai hasn't said how much horsepower will be available, but rumors point to the Ioniq 5 N at least matching the 576 hp of the 2023 Kia EV6 GT, which features the same E-GMP platform. That output in the Ioniq 5 N should result in 0-60 mph acceleration in less than 3.5 seconds.

But Hyundai N has endeavored to make the Ioniq 5 N fun away from the dragstrip. Leveraging know-how from its successful World Rally Championship program, where it competes with the i20 N WRC, Hyundai N has finely tuned the chassis systems to deliver fun handling as well, the company claims.

This extends to development of the vehicle's torque-vectoring system and electronic limited-slip differential. Hyundai N has also developed various drive modes, including one specifically for drifting. Called N Drift Optimizer, the mode adjusts the torque distribution, torque rate, suspension stiffness, steering effort, and wheel slip limitation, Hyundai said.

From our spy shots of prototypes, we know the vehicle will also improve on the stock Ioniq 5 via a lowered suspension, a wider track, and a high-performance brake package.

2024 Hyundai Ioniq 5 N prototype

2024 Hyundai Ioniq 5 N prototype

To test the Ioniq 5 N's handling at the limit, company engineers headed to Arjeplog, Sweden, this past winter and drove prototypes on the frozen lakes found in the area. The location is ideal for testing as it provides engineers with precisely reproducible low-grip conditions.

Hyundai hasn't said whether the Ioniq 5 N will reach the U.S., though the high-performance electric compact crossover is expected to arrive here for the 2024 model year.