Tighter K-Battery Alliance... MOU Signing Soon for Win-Win Cooperation

Hyundai Motor and SK Consider Comprehensive e-Mobility Platform Business Cooperation

Close Communication Between Samsung and Hybrid Electric Vehicle Battery Suppliers

LG Expected to Play Key Partner Role in Southeast Asia Electric Vehicle Market Entry

[Asia Economy Reporter Park So-yeon] Following the battery summit led by Chung Eui-sun, Vice Chairman of Hyundai Motor Group, at the forefront of the 'Green New Deal,' collaboration among the four major conglomerates has become even closer. Samsung, Hyundai Motor, SK, and LG groups are preparing to sign corporate Memorandums of Understanding (MOUs) based on the discussions held during the battery summit among the group heads. They are also reviewing win-win cooperation plans to support future mobility materials, parts, and equipment companies. Vice Chairman Chung will report on the Green New Deal plan based on these developments at the 'Korean New Deal National Report Conference' to be held at the Blue House this afternoon.

According to the business community on the 14th, Hyundai Motor Group and SK Group are reportedly reviewing MOUs and additional discussions for business cooperation related to e-mobility platforms. Although these MOUs do not have legal binding force, they aim to explore future business models and the feasibility of concrete commercialization through flexible business cooperation. This comprehensive plan encompasses SK Group’s 5G (5th generation communication), artificial intelligence, T-map-based autonomous driving technology, car entertainment, automotive semiconductors, next-generation battery technology, and Hyundai Motor’s future mobility technologies. SK Innovation is also reportedly a strong candidate to secure the third batch of orders for Hyundai Motor’s dedicated electric vehicle platform E-GMP, which will be placed in the second half of this year.

Communication between the working-level teams of Samsung Group and Hyundai Motor Group, which had little interaction before, is also actively taking place. Industry insiders see a high possibility of cooperation between Samsung and Hyundai Motor Group in supplying batteries for hybrid electric vehicles. Hyundai Motor has already secured 5 to 6 years’ worth of supply through cooperation with LG Chem, SK Innovation, and China’s CATL. However, in the current global market, battery supply is significantly lagging behind the volume of electric vehicle launches. If cooperation between Hyundai Motor Group and Samsung expands, Hyundai and Kia Motors’ ability to procure batteries in a timely manner will be enhanced. In addition, alongside LG Chem and SK Innovation’s pouch-type batteries, Samsung SDI’s prismatic batteries will increase flexibility in the changing structure of electric vehicle batteries. Discussions on next-generation battery cooperation, including solid-state batteries, which are the top priority for the group heads, are also expected to continue. Regarding this, a Samsung SDI official said, “Although it has not yet progressed to the stage of a concrete MOU, active exchanges of opinions among working-level teams are taking place, and the atmosphere is positive.”

LG Group is highly likely to establish itself as a key partner for Hyundai Motor’s entry into the Southeast Asian electric vehicle market. Currently, discussions on establishing a battery cell joint venture between Hyundai Motor and LG Chem are becoming more concrete, with Indonesia being considered the most likely candidate for the joint venture’s location. This is because Hyundai Motor announced in November last year its plan to build a complete vehicle factory in Indonesia, and Indonesia is sending a love call to LG Chem as it pursues an electric vehicle promotion strategy.

Along with this, the four major groups also plan to prepare win-win cooperation measures to support small and medium-sized enterprises in future mobility materials, parts, and equipment.

A business community official said, “In the dynamic electric vehicle market where startups like Tesla and Nikola are active, Hyundai Motor, ranked 4th in global electric vehicle market share, is seeking close cooperation with domestic battery companies,” adding, “Hyundai Motor and battery companies are all standing at a very important turning point aiming to reclaim the lead.”