South Korea’s main automakers are doubling down on their efforts to chop EV prices with new battery tech. Hyundai and Kia are teaming as much as develop LFP battery supplies to energy up lower-priced EVs.
Hyundai and Kia eye cheaper EVs with LFP battery tech
Hyundai and Kia launched a brand new venture to develop lithium iron phosphate battery cathode materials for future EV fashions.
As a part of the initiative, the automakers are teaming up with Hyundai Metal and EcoPro BM, South Korea’s main battery supplies maker, to develop a precursor for LFP battery cathode materials manufacturing.
Korea’s Ministry of Commerce, Trade, and Power may also assist the four-year venture as a part of its LFP Battery Know-how Growth plan.
“To fulfill future demand within the EV market, speedy technological growth and efficient battery provide chain institution are important,” Hyundai and Kia’s electrification and driving supplies boss, SoonJoon Jung, mentioned.
The brand new venture is designed to “scale back import reliance” whereas securing Hyundai a secure provide chain because the trade shifts to electrical.
Though most LFP battery cathode supplies are made by including lithium to precursor supplies corresponding to phosphate and iron sulfate, Hyundai and Kia are growing a extra superior course of.
Utilizing a direct synthesis course of, including iron powder and lithium concurrently skips the necessity to create a separate precursor. In keeping with Hyundai, this reduces hazardous substance emissions and cuts manufacturing prices.
Extra inexpensive EVs are coming
Hyundai claims its new methodology can increase manufacturing effectivity whereas driving decrease prices in comparison with present processes.
With Hyundai Metal, the automakers plan to develop “high-purity iron powder” processing tech utilizing domestically recycled iron. EcoPro BM will then use the tech to develop LFP battery cathode materials.
By advancing new LFP battery tech, Hyundai and Kia wish to “spearhead” developments within the EV battery market.
The announcement comes as China continues dominating the worldwide EV battery market. In keeping with SNE Analysis, China’s CATL accounted for 31.6% of worldwide EV battery gross sales within the second quarter. With BYD’s 11.9% share, China’s main battery makers accounted for 43.5% of the worldwide market in Q2.
South Korea’s LG Power Answer (14.7%), Samsung SDI (7.1%), and SK On (4.3%) made the highest 5 in world EV gross sales.
China is main the low-cost EV motion with automobiles like BYD’s Seagull promoting for underneath $10,000 (69,800 yuan), however South Korea just isn’t far behind.
Hyundai and Kia launched a few of their most inexpensive EVs this yr, together with the Kia EV3 and Hyundai Casper Electrical (Inster EV abroad).
The Casper Electrical begins at simply $22,800 (31.5 million received) in Korea. With incentives, Hyundai mentioned the Casper EV could possibly be purchased for as little as $14,500 (20 million received), whereas Kia’s EV3 prices $30,700 (KRW 42.08 million).
In Europe, Hyundai’s Casper (Inster) EV will begin at lower than $27,000 (25,000 euros) with as much as 220 miles (355 km) WLTP vary. Kia’s EV3 begins at round $42,000 ((£32,995) with as much as 372 miles (599 km) WLTP vary.
Electrek’s Take
Hyundai and Kia are already climbing the worldwide EV gross sales ranks. Within the second quarter, the Korean automakers topped Ford and GM in US EV gross sales, claiming over 10% of the market.
Korean automakers have already got a few of the lowest-priced electrical automobiles within the US, with the Hyundai Kona Electrical beginning at underneath $35,000 and Kia’s EV6 beginning at $42,600. Nevertheless, Hyundai and Kia are planning to launch much more inexpensive EVs.
Kia’s EV3 is predicted to begin at round $35,000 within the US, whereas its EV4 electrical sedan, set to launch subsequent yr, might be priced at round $39,000.
Hyundai is opening its huge Metaplant America in Georgia this fall, enabling US-built electrical fashions.
The primary EV set to roll off the meeting line is Hyundai’s up to date 2025 IONIQ 5. As soon as battery manufacturing begins in GA in 2025, Hyundai expects automobiles constructed on the plant will qualify for the $7,500 EV tax credit score. Till then, the corporate is passing on huge reductions by means of leasing.
With superior new battery tech, Hyundai and Kia anticipate to proceed decreasing EV manufacturing prices, enabling extra inexpensive fashions.
Supply: Hyundai Motor Group
