[Exclusive] Hyundai Motor Accelerates Battery Internalization... Establishes New Department for Electrification Energy Solutions

Establishment of Battery and Hydrogen Fuel Cell Development Chief Position
Dual Leadership of Two Centers, Promoted to Head
Appointment of Battery and Fuel Cell Expert Executive Director Kim Chang-hwan
Hyundai Motor Strengthens Battery Design and Performance Development Capabilities
Automakers Increasing In-House Battery Design and Production

Hyundai Motor Company and Kia have established a new position in charge of Electrification Energy Solutions, overseeing battery research and development (R&D). They created a new role to oversee both the Battery Development Center and the Hydrogen Fuel Cell Development Center, promoting an executive who previously held concurrent positions at both centers to the head of this new division. By strengthening the battery development research organization, Hyundai Motor Company and Kia are expected to accelerate the group's battery internalization strategy. This move is also interpreted as an effort to reinforce the 'fabless' model for optimal battery production.

According to industry sources on the 4th, Hyundai Motor Company and Kia appointed Executive Director Kim Chang-hwan, who concurrently served as head of the Battery and Fuel Cell Centers, to the position of head of Electrification Energy Solutions at the end of last month. Until recently, the two centers?the Battery Development Center and the Hydrogen Fuel Cell Development Center?were operated directly under the Chief Technology Officer (CTO) or division head, but a new 'head' position was created between these roles.

The Hyundai Motor Group R&D organizational structure is arranged in the order of team → department → center → head → division head. The reason Hyundai Motor Company and Kia elevated the battery development research organization, which had been at the center level, to a 'head' level organization was to strengthen capabilities in battery research, design, and management. Within the group, as the importance of battery development has become more prominent, the need for a general management position to closely oversee this area was raised. With Executive Director Kim's promotion to head, Senior Executive Director Choi Jae-hoon, who previously served as head of the Battery Design Office, was appointed as the new head of the Battery Development Center. Kim will continue to concurrently serve as head of the Hydrogen Fuel Cell Development Center.

Executive Director Kim is a battery expert with experience in developing batteries for hybrid and electric vehicles as well as hydrogen fuel cells. Recognized for his leadership in electric vehicle batteries and hydrogen fuel cells, Kim is the first Korean to serve as president of the International Federation of Automotive Engineering Societies. Hydrogen electric vehicles use hydrogen as fuel but are broadly considered a type of electric vehicle because the fuel cell converts chemical energy from the reaction of hydrogen and oxygen into electrical energy to power the motor. Hyundai Motor Group expects synergy effects in research and development of electric vehicle batteries and hydrogen fuel cells from this personnel change.

Kim Chang-hwan, Head of Electrification Energy Solutions at Hyundai Motor Company and Kia [Photo by Hyundai Motor Company and Kia]

In the finished vehicle industry, battery internalization has emerged as a key task in the transition to electrification over the past several years. Leading electric vehicle manufacturers like Tesla and BYD handle everything from battery development to design and mass production in-house to secure cost competitiveness. Top-tier global automakers such as Volkswagen and Toyota have also established subsidiaries to pursue in-house battery production.

Hyundai Motor Group has also strengthened its battery design capabilities and set plans for next-generation battery development. Last year, Hyundai Motor announced a 9.5 trillion KRW investment plan over the next decade to enhance battery R&D capabilities. Even if it does not directly mass-produce batteries, the plan is to secure technological capabilities from raw material procurement to specification finalization, design, product evaluation, and performance improvement. This approach aims to strengthen proprietary battery technology while entrusting production to battery companies, pursuing a fabless model.

Hyundai Motor first equipped its newly designed battery in the new Santa Fe Hybrid launched last year. This NCM (Nickel-Cobalt-Manganese) series battery was designed with a significantly increased nickel content to extend driving range. Although SK On handled mass production, Hyundai led the core processes including detailed specifications, design, and production.

Hyundai Motor Company and Kia have recently been aggressively recruiting battery-related personnel, intensifying efforts to develop next-generation batteries. They are hiring not only for eco-friendly vehicle battery and electronic system development and battery safety verification but also for next-generation solid-state and lithium-metal batteries, as well as batteries to be installed in future advanced air mobility (AAM) vehicles.