[From the Top Engineer] ② Kim Chang-hwan, Hyundai Motor Vice President: "We Will Lead the Market by Enhancing the Economic Efficiency of NCM Batteries"

Hyundai Motor's Electrification Energy Solutions Chief
"Economic, High-Performance NCM Will Be the New Trend Over LFP"
Accelerating In-House Battery Process Technology
"The Engine of Future Vehicles Is Hydrogen Fuel Cells...
Look Forward to the New Nexo"

Editor's NoteSouth Korea's industry is facing a comprehensive crisis. The rapid rise in raw material prices, the restructuring of global supply chains, and the US-China trade conflict have all combined to worsen the business environment. The key to overcoming this crisis ultimately lies in technology. Technology is the lifeline and the value of existence for companies. This is also why companies are placing greater emphasis on the role of Chief Technology Officers (CTOs). CTOs have established themselves not only as developers of new technologies but also as strategists who analyze changing markets and present future visions for their companies. Asia Economy met with CTOs from major domestic companies to hear about the core technologies and differentiation strategies that each industry is focusing on. Through the technology strategies of leading companies, we seek ways to enhance the competitiveness of our industries and create future value.

"LFP (Lithium Iron Phosphate) batteries were developed before NCM (Nickel Cobalt Manganese) batteries. It was in the 1990s, but they soon disappeared from the market. The reason was that they were too expensive. However, over time, LFP prices have dropped, and now they are taking the lead in the battery market. But going forward, we believe that economical NCM will create a new trend."

Kim Chang-hwan, Vice President in charge of Electrification Energy Solutions at Hyundai Motor Company, is being interviewed by our newspaper on the 13th at Hyundai Motor Environment Technology Research Center located in Mabuk-dong, Giheung-gu, Yongin-si, Gyeonggi-do. (Photo by Hyundai Motor)

Kim Chang-hwan, Vice President in charge of Electrification Energy Solutions at Hyundai Motor Company, is busy turning the idea that high-performance NCM batteries can also be made affordable enough to compete with LFP into reality. When we met him on the 13th at Hyundai Motor's Environmental Technology Research Center located in Mabuk-dong, Giheung-gu, Yongin-si, Gyeonggi-do, he devoted a significant portion of the two-hour interview to next-generation batteries.

He particularly emphasized economical NCM. It reflected Hyundai Motor's commitment to "making electric vehicles that offer good performance at a low cost." His interest in economical NCM started with a phone call. While on a business trip abroad, an industry insider asked him over the phone, "Why isn't NCM as cheap as LFP?"

From an engineer's perspective, he thought it was natural that nickel and cobalt are expensive, so he wondered why such a question was asked. But after hanging up and reflecting, he recalled that LFP also struggled initially because it was expensive. Believing there must be a way to make NCM cheaper, he immediately called the CEO of a battery company he was collaborating with to share this idea.

Vice President Kim said, "He also thought it was possible, so we researched how to implement it and proceeded with development." He emphasized, "Ultimately, technology depends on whether we have the capacity to absorb it or not, and from that perspective, Hyundai must be fully prepared for battery technology."

Economical NCM is a high-voltage mid-nickel product that reduces the proportion of expensive nickel while increasing manganese content. It is being developed to lower costs while increasing energy density. The plan is to increase energy density by more than 20% compared to current levels by 2030.

Vice President Kim is eager to develop economical NCM batteries because the technology customers need must be delivered to the market in a timely manner. He also considers the balance between technology development and commercialization.

He cited electric vehicle charging technology as an example. To make electric vehicle charging similar to refueling internal combustion engines, it must be completed within 3 to 5 minutes. To charge batteries quickly, charging voltage or output must be increased. Currently, fast charging output is around 350kW. The automotive industry is developing technology to increase the ‘C’ rate, which represents the charging output relative to battery capacity. For example, for an 80kWh battery, 1C means charging at up to 80kW, and 4C means charging at up to 320kW.

Hyundai Motor secured 8C technology (meaning charging at eight times the battery capacity output) two years ago, which is twice as high as that. He explained, "We need to balance by questioning whether customers need it and whether it is worth spending a lot of money on it," adding, "Technology acquisition and commercialization are completely different matters."

Kim Chang-hwan, Vice President in charge of Electrification Energy Solutions at Hyundai Motor Company, is being interviewed by our newspaper on the 13th at Hyundai Motor Environment Technology Research Center located in Mabuk-dong, Giheung-gu, Yongin-si, Gyeonggi-do. (Photo by Hyundai Motor)

Vice President Kim also oversees hydrogen fuel cell development. He said, "In future vehicles, hydrogen fuel cells will replace engines," and predicted, "Currently, engines and batteries coexist, but eventually, the form will be a combination of batteries and hydrogen."

He continued, "Hyundai Motor has a vertical system from early development to mass production for both batteries and hydrogen fuel cells, allowing organic verification and rapid application of technology," expressing confidence, "If a new battery comes to market, Hyundai Motor will be the company to release it."

The project he is currently focused on is the new Nexo based on hydrogen fuel cells, scheduled for release in the first half of this year. Vice President Kim said, "(The new Nexo) has much better power performance and improved battery performance," adding, "You can look forward to it."

Regarding hydrogen fuel cell development, he highlighted, "Hydrogen vehicles need to travel 50% farther per charge than electric vehicles," and introduced that development is also focused on reducing charging time and lowering costs.

Jang Jae-hoon, President of Hyundai Motor Company (left), Lee Sang-yeop, Vice President (second from right), and other development executives are unveiling the hydrogen electric vehicle concept car 'INITIUM' for the first time on the 31st at Hyundai Motorstudio Goyang in Gyeonggi Province. Photo by Jo Yong-jun

In the hydrogen sector, the biggest competitor to watch is China. He warned, "China defined hydrogen as an ‘energy source’ when it enacted the Hydrogen Law last year, and since then, the entire industrial ecosystem views hydrogen as energy rather than gas. They are expected to announce the 15th Five-Year Plan containing the hydrogen industry roadmap this year. Because China can achieve economic scale with domestic demand alone, it may take the lead."

He added, "What we can compete with is technology and brand. Although many manufacturing sectors have shifted leadership to China, there are definitely successful strategies that can secure competitiveness."

Vice President Kim viewed the emergence of solid-state batteries, which is the biggest interest in the battery market, as unlikely in the near term. He said, "Solid-state batteries are often called the dream battery, but will they really come out by 2030? I think there are many challenges to overcome." To colleagues and junior engineers dedicated to technology development, he advised, "When enthusiasm is high, even small changes are difficult. First, you have to learn to walk, then run, and only after that think about flying."

He also cautioned against engineers' overconfidence in their own technology. He said, "Looking at the geocentric and heliocentric models in the past, what everyone believed was considered correct rather than the facts. Like VHS and Betamax videos?Betamax was smaller and had better quality, but when many companies chose VHS, that technology became the standard." He added, "Even if a certain electrification battery technology is good, consumers can always make different choices." He concluded, "It is inconvenient, but preparing for that is the engineer's mission."