Hyundai Motor·Kia and SK Innovation Collaborate... Hybrid Vehicle Battery Development

2024 Production Target
From Design to Quality Verification
Coordinating Every Step Together

[Asia Economy Reporters Choi Dae-yeol and Lee Ki-min] Hyundai Motor Company, Kia, and SK Innovation have agreed to jointly develop batteries for hybrid electric vehicles. Hybrid vehicles, which operate using both traditional internal combustion engines and electric motors, are gaining attention as an intermediate step ahead of pure electric vehicles or hydrogen fuel cell vehicles, which are considered the ultimate alternatives.

Until now, Hyundai Motor Company and Kia primarily used LG batteries for their hybrid vehicles, with SK batteries used only in some models. It is also reported that Hyundai Motor Company and Kia are reviewing cooperation plans with another battery manufacturer, Samsung SDI. This electric vehicle alliance, envisioned by Hyundai Motor Group Chairman Chung Eui-sun through successive meetings with the heads of the three major domestic battery companies last year, appears to be yielding results.

Kia Niro Plug-in Hybrid. It is a hybrid vehicle that uses both an engine and a motor, with the distinctive feature of being chargeable like an electric vehicle. Some PHEV models from Hyundai Motor Company and Kia use SK batteries.

On the 16th, Hyundai Motor Company, Kia, and SK Innovation announced that they will jointly develop batteries for hybrid vehicles, aiming for mass production in 2024. SK, which has strengths in pouch-type batteries, will work closely from the design stage through product evaluation and performance improvement to create batteries tailored to the characteristics of upcoming vehicles.

According to industry sources, hybrid vehicles remain a significant portion of eco-friendly vehicles, accounting for 82% of the total as of the end of last year, serving as a medium- to short-term solution for reducing greenhouse gas emissions. Park Chan-young, Head of Powertrain Parts Purchasing at Hyundai Motor Company, said, "We plan to collaborate across all areas including battery development, mass production, and quality verification." Lee Jang-won, Director of Battery Research at SK Innovation, stated, "We will lead the future mobility industry by creating synergy through our outstanding battery technology and manufacturing stability."

Reviewing Cooperation with Samsung SDI
Hyundai Motor Group Chairman Chung Eui-sun
Successive Meetings with Heads of Three Battery Companies
Visible Results from Electric Vehicle Alliance

While many view pure electric vehicles or fuel cell vehicles, which emit no greenhouse gases, as the future models of finished vehicles, considering technological limitations such as travel distance and charging infrastructure, hybrid vehicles are regarded as a practical alternative for the coming years. Since they utilize existing platforms, development periods are shorter and a variety of models can be offered, resulting in high customer preference. According to the Korea Automobile Manufacturers Association, global hybrid vehicle sales increased from about 2.05 million units in 2017 to 2.28 million units last year. During the same period, domestic sales rose from 83,548 units to 137,027 units, an increase of over 60%.

Chairman Chey Tae-won of SK Group (left) and Chairman Chung Eui-sun of Hyundai Motor Group
[Image source=Yonhap News]

This collaboration, formed through the close relationship between domestic automakers and battery companies, is significant as an industry cooperation model aimed at proactively leading the industrial ecosystem. It is also expected to accelerate the government's vehicle electrification projects. Previously, Hyundai Mobis has maintained a steady cooperative relationship since jointly developing and producing electrified vehicle battery packs with LG Chem (now LG Energy Solution) in 2009.

Cooperation with SK began in 2010 with the domestic first high-speed electric vehicle BlueOn battery, continuing through the first mass-produced domestic electric vehicle Ray EV and the first exported electric vehicle Soul EV. Hyundai Motor Company has had no prior transactions with Samsung SDI, but the industry expects that transactions could occur at any time, as Samsung SDI has participated in battery bids for the next model of the Ioniq.

A Hyundai Motor Company official explained, "We plan to cooperate with various battery companies to apply batteries optimized for each vehicle model and sales region."