[Hyundai Way Secret③] 'Jeong Mong-gu - Gu Bon-mu' United, Changed Hybrid History

World's First Lithium-Ion Battery for Automobiles Applied to Mass-Produced Cars
17 Years of Hyundai-LG Battery Collaboration
Two Chairmen Join Hands at Pyongyang Meeting...Changing the Industrial Map
Foundation Established for Korean Companies' Leadership in Hybrid and Electric Vehicle Batteries
Hyundai Motor and Kia Near 4 Million Cumulative Hybrid Sales

"A hybrid made with domestic technology, let's give it a try too."

In September 2007, a significant discussion that would change the history of South Korea's industrial map took place at Pyongyang Okryugwan. This was the story of Chung Mong-koo, Honorary Chairman of Hyundai Motor Group, and the late Koo Bon-moo, former Chairman of LG Group, who visited Pyongyang as special envoys for the inter-Korean summit. At the luncheon that day, Chairman Chung emphasized to Chairman Koo, who was seated next to him, the importance of a Korean-style hybrid and the potential of the lithium-ion battery business for automobiles. Known for his drive and tenacity, Chairman Chung and the straightforward, unpretentious Chairman Koo immediately found common ground. The 'world's first lithium-ion battery mass-production car' project proceeded swiftly from there.

At that time, the global hybrid market was dominated by Toyota. Toyota devised a series-parallel hybrid system that uses two motors to simultaneously charge and drive. The battery used was Panasonic's nickel-metal battery. Hyundai Motor also contacted Toyota's technical team several times for hybrid technology support. Although they could learn the technology by swallowing their pride, Toyota, which held the patents, set the price. Panasonic, Toyota's partner, also had no intention of supplying batteries cheaply.

Everyone said it was impossible. Skepticism was strong not only among LG Chem (now LG Energy Solution) executives but also within Hyundai Motor Group. Honorary Chairman Chung gathered senior executives from finance, purchasing, and production technology departments and instructed full support for hybrid development. He told the research institute to report directly to him whenever there were obstacles in R&D. Hyundai aimed to develop a series-parallel hybrid completely different from Toyota's. The core of this system was the development of a lithium-ion battery applicable to mass-production cars. LG Chem's help was crucial.

The Avante LPi Hybrid, launched in 2009 as the world's first mass-produced lithium-ion battery vehicle [Photo by Hyundai Motor Company]

Thanks to Honorary Chairman Chung persuading former Chairman Koo, the project gained momentum. Eventually, in 2009, Hyundai's first hybrid vehicle, the 'Avante LPi Hybrid,' was born. Hyundai's hybrid system is a series-parallel type with a single motor, where a clutch connects and disconnects the engine and motor during driving. Through clutch control, fuel-efficient driving switching between motor and engine is possible.

The battery used was a lithium-ion battery supplied by LG Chem. Until the mid-2000s, lithium-ion batteries were mainly used in small IT devices like laptops and mobile phones. The technology itself was not unfamiliar, but the challenge was to create a high-voltage, safe battery suitable for automotive use.

Hyundai Motor and LG Chem succeeded in applying lithium-ion batteries to a mass-production car for the first time in the world with the 2009 Avante Hybrid. Nissan introduced the first lithium-ion electric vehicle in 1996, but it was not a mass-production car. Nissan released the world's first mass-produced lithium-ion battery electric vehicle, the Leaf, in 2010, one year after Hyundai's Avante Hybrid. The automotive lithium-ion batteries widely used in electric vehicles today were introduced earlier by Hyundai than Tesla or Toyota.

Kim Dong-geon, head of Hyundai Motor's Battery Development Office, said, "At that time, only Toyota's nickel-metal hydride battery guaranteed reliability and safety for automotive use." He added, "Importing Japanese products would have been the easy way, but we chose the difficult path of domestic development." He continued, "Now, it is natural to think of lithium-ion batteries as standard for electric vehicles, but Hyundai was at the start of that journey."

The historic meeting of the two company heads 17 years ago changed not only South Korea but also the global automotive and battery industry landscape. Hyundai Motor Group has steadily developed the hybrid technology introduced in 2009. Along with technological advancements, hybrid models have expanded to mid-to-large vehicles like Sonata and Grandeur, as well as RV models such as Santa Fe and Carnival. Currently, there are 13 HEV models and 5 plug-in hybrid (PHEV) models on sale. Hyundai Motor and Kia's global cumulative hybrid (including PHEV) sales exceeded 3 million units last year and are approaching 4 million units this year. Initially, there were many complaints about series-parallel hybrids, such as shift shock and insufficient fuel efficiency, but these issues were gradually addressed and improved.

The technological assets accumulated from hybrids have blossomed in electric vehicles. Hybrids require real-time control switching between electric motor and engine, making them the pinnacle of powertrain technology. Hyundai is recognized in the electric vehicle market based on its meticulously built hybrid technology. Models applying Hyundai Motor Group's dedicated electric vehicle platform 'E-GMP' have swept awards in crash safety evaluations and global automotive ceremonies. In major markets like the U.S., Hyundai and Kia electric vehicles have surpassed a 10% market share.

Hybrid vehicles are expected to be the stepping stone for Hyundai Motor Group to rise to the second position among global manufacturers. In the first half of this year, Hyundai Motor and Kia's hybrid sales grew 15% year-on-year to 490,000 units. With the addition of the range-extended hybrid (EREV) currently under development for release in 2026, sales of eco-friendly vehicles could expand further. A senior industry official said, "In the era of electric vehicle chasm (temporary demand decline), Hyundai can strongly lead with the option of hybrids," adding, "The business started by the foresight of the two chairmen has become the foundation for Korean companies to be recognized in the global market."