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 undertaking 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, Business, and Vitality will even assist the four-year undertaking as a part of its LFP Battery Expertise Improvement plan.
“To satisfy future demand within the EV market, fast technological improvement and efficient battery provide chain institution are important,” Hyundai and Kia’s electrification and driving supplies boss, SoonJoon Jung, mentioned.
The brand new undertaking is designed to “scale back import reliance” whereas securing Hyundai a steady provide chain because the trade shifts to electrical.
Though most LFP battery cathode supplies are made by including lithium to precursor supplies similar to phosphate and iron sulfate, Hyundai and Kia are creating 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. Based on Hyundai, this reduces hazardous substance emissions and cuts manufacturing prices.
Extra reasonably priced EVs are coming
Hyundai claims its new technique can enhance 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 need to “spearhead” developments within the EV battery market.
The announcement comes as China continues dominating the worldwide EV battery market. Based on 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 Vitality Answer (14.7%), Samsung SDI (7.1%), and SK On (4.3%) made the highest 5 in international EV gross sales.
China is main the low-cost EV motion with autos like BYD’s Seagull promoting for beneath $10,000 (69,800 yuan), however South Korea just isn’t far behind.
Hyundai and Kia launched a few of their most reasonably priced EVs this 12 months, 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 autos within the US, with the Hyundai Kona Electrical beginning at beneath $35,000 and Kia’s EV6 beginning at $42,600. Nonetheless, Hyundai and Kia are planning to launch much more reasonably priced EVs.
Kia’s EV3 is anticipated to start out at round $35,000 within the US, whereas its EV4 electrical sedan, set to launch subsequent 12 months, might be priced at round $39,000.
Hyundai is opening its large 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 autos constructed on the plant will qualify for the $7,500 EV tax credit score. Till then, the corporate is passing on large reductions by means of leasing.
With superior new battery tech, Hyundai and Kia count on to proceed reducing EV manufacturing prices, enabling extra reasonably priced fashions.
Supply: Hyundai Motor Group
FTC: We use revenue incomes auto affiliate hyperlinks. Extra.
