Hyundai Motor Group, a leading South Korean automaker, has established a specialized team to create its own electric vehicle batteries. This initiative arises from concerns over potential competitive lag following Chinese EV manufacturer BYD’s announcement of a significant battery advancement. Their new technology can provide over 400 kilometers of range after just a five-minute charge.
The newly established B Task Force (TFT) was formed on April 7 under Hyundai’s manufacturing division. The company aims to create an integrated system to enhance long-term battery competitiveness. However, insiders indicate that the primary objective of this team is to spearhead internal battery development and enhance technological capabilities.
Prominent figures within the B TFT include Executive Vice President Jung Jun-cheul, who leads the manufacturing division, and other key personnel such as Choi Jae-hoon, head of battery development, as well as Lee Woo-sung (electrification energy solutions), Seo Jung-hoon (battery design), and Kim Dong-geon (battery cell development).
Currently, Hyundai and its affiliate Kia obtain EV batteries from external providers like LG Energy Solution and SK On. While there is an existing internal battery development unit within the group, its current role predominantly involves collaborating with partners to adapt external products for use in their vehicles.
Some Hyundai and Kia models, such as the Kona Electric and EV3, are equipped with batteries co-developed with LG Energy Solution. Both companies initiated a joint battery cell venture, HLI Green Power, in Indonesia last year.
Hyundai’s recent strategic move is viewed as a response to the increasing pressure following BYD’s unveiling of its advanced fast-charging battery technology. BYD’s development, revealed by Chairman Wang Chuanfu in March, can deliver 400 kilometers of range with a mere five-minute charge, surpassing the performance of competitors like Tesla and Mercedes-Benz.
The introduction of BYD’s innovative technology has caused notable market shifts, including a 5.3% drop in Tesla’s stock following the announcement. Internal battery development provides automakers with an opportunity to reduce procurement costs and offer more affordable EV options. This strategy has enabled BYD to surpass Tesla as the leading EV seller by leveraging its proprietary battery technology.
“If you rely on outside suppliers, there’s a limit to how much you can bring prices down,” said an industry insider. “That’s why companies like Mercedes-Benz and Hyundai are now betting big on internalizing battery technology.”
Source: Chosun
