Lotte's Eco-Friendly Logistics Vehicles to Be Manufactured by Kia

Kia and Lotte Global Logistics signed a memorandum of understanding (MOU) on the 6th to create an eco-friendly logistics ecosystem.

According to the agreement, Kia will supply electric cargo vehicles to Lotte and develop vehicles for eco-friendly logistics operations to be deployed on-site. Kia is developing purpose-built mobility (PBV) that flexibly utilizes platforms according to the vehicle's usage.

From the left in the photo, Lee Hoon-ki, Head of ESG Management Innovation Office at Lotte Holdings, Park Chan-bok, CEO of Lotte Global Logistics, Song Ho-sung, President of Kia, and Kwon Hyuk-ho, Head of Domestic Business Division at Kia, are taking a commemorative photo after signing a business agreement at Kia's headquarters in Yangjae-dong on the 6th.

Considering Lotte's participation in the Ministry of Environment's zero-emission vehicle transition campaign, Kia will supply the electric cargo vehicle Bongo III EV. Furthermore, Kia plans to develop and supply PBVs optimized for Lotte Global Logistics' logistics business. Since Lotte operates logistics across various industries such as distribution, food and beverage, home appliances, and parcel delivery, Kia expects to develop PBV models optimized for each industry sector.

They also agreed to conduct consulting to optimize the supply chain for used batteries and to pilot a business based on the results. Battery replacement technology and charging solution businesses utilizing used battery energy storage systems will also be piloted. They will collaborate on ways to enhance convenience in various aspects of electric vehicle usage.

Kia has designated the PBV business as one of its future core businesses and is building a dedicated factory with an annual capacity of 150,000 units, aiming for mass production in 2025. The lineup will range from small to large vehicles, and specialized solution packages centered on software, as well as dedicated sales channels, will be established.