Hyundai Motor Co. is making strides in electric vehicle (EV) innovation with plans to launch its first in-house battery production lines by 2027. This initiative aims to enhance EV performance, efficiency, and cost-effectiveness.
According to sources, Hyundai will set up production lines with a capacity of 1-2GWh at its R&D center in Anseong, Gyeonggi Province, allowing it to produce prototype batteries independently of its current suppliers.
Hyundai is actively negotiating with cathode material suppliers, including L&F Co., LG Chem Ltd., and several Chinese firms, to source materials for these batteries, with shipments expected to commence in 2027. The automaker is also exploring the production of high-energy-density ternary batteries, such as nickel-cobalt-manganese (NCM) batteries.
The company may partner with battery cell manufacturers like SK On to outsource production through OEM contracts, allowing for customized battery development and improved production efficiency.
Hyundai, Kia Corp., and Genesis EVs utilize pouch-type NCM and NCMA batteries from SK On and LG Energy Solution. At the same time, budget models like the Kona, Niro, and Ray are equipped with lithium iron phosphate (LFP) batteries from China’s CATL.
Hyundai’s move to internalize battery production aligns with a growing industry trend. Batteries account for nearly 40% of an EV’s production cost and are critical to vehicle performance. Major automakers such as Tesla, BYD, General Motors, and Toyota have already started internalizing battery technology to strengthen their competitive edge.
Despite these ambitious plans, Hyundai aims to maintain its partnerships with existing battery suppliers, ensuring a diverse and resilient supply chain to support the expansion of its EV portfolio.
Source: The Korean Economic Daily
