Hyundai and SK Innovation to develop an EV Battery Business Ecosystem
Hyundai Motor Group continues to work with global battery industry players to explore new business opportunities and improve technology
Hyundai Motor Group and SK Innovation Co. have agreed to work together to develop a sustainable ecosystem for electric vehicle batteries, which are vital to the future mobility industry.
The two parties announced their plan to work together on various business areas of the electric vehicle battery industry, including solutions for battery sales, battery management service, and battery reuse and recycling.
The collaboration arises from the companies' shared need to create a value chain for batteries and to strengthen environmental friendliness in business operations over the entire life cycle of EV batteries.
In contrast to existing cooperation programs between mobility companies and battery companies, which usually focused on battery supply, the Hyundai SK cooperation aims at a positive cycle of battery use, known as Battery as a Service (BaaS) and a leasing or rental service. As a result, the collaboration is expected to catalyze the diffusion of various systems of cooperation between mobility and battery companies.
Through this partnership, the two parties want to strengthen the stability of the battery supply chain and create a positive resource cycle from recycling to production. Reduce CO2 emissions; Promote optimal design that connects electric vehicles and battery reuse, and create synergies by maximizing the added value from optimal battery design.
To enable collaboration, both sides are focusing on the first process of collecting and checking the battery from Kia Motors' Niro EV model.
In particular, the two companies will look for solutions that can maximize the value and environmental friendliness of EV batteries, including reusing batteries that can no longer be used in vehicles in various applications such as energy storage systems (ESS). and battery recycling, which extracts economically valuable metals such as lithium, nickel and cobalt.
These innovations are expected to increase the value and competitiveness of the battery recycling industry, which will support the future electric vehicle era.
In addition, Hyundai Motor Group and SK Innovation plan to synergize the business infrastructures and capabilities of their respective subsidiaries in different industries in order to strengthen the competitiveness of their batteries and expand the growth of related sectors.
"Hyundai Motor Group's collaboration with SK Innovation, a world-class battery supplier for our electric global modular platform (E-GMP), which will be launched in 2021, is a critical first step in maximizing synergies between mobility and battery companies," said Youngcho Chi , President and Chief Innovation Officer of Hyundai Motor Group.
"We expect our collaboration to play an extremely positive role in strengthening Hyundai-Kia's competitiveness in terms of clean mobility, as well as expanding its range of green electric vehicles."
“This collaboration between Hyundai Motor Group, which is leading the popularization of electric vehicles in the world market, and SK Innovation, which has the most advanced technology in battery development and recycling, is significant in that the two have come together to create an overall to work together EV cycle, ”said Dongseob Jee, President of SK Innovation's Battery Business. "Both companies will create a seamless collaboration system to explore new business opportunities along the battery value chain."
In addition to working with SK Innovation, Hyundai Motor Group aims to secure and open up new markets by working with global players who specialize in reusing electric vehicle batteries, including Korea Hydro & Nuclear Power Co., Wärtsilä, OCI and Hanwha Solutions. Through the cooperation with SK Innovation Co., the group plans to fundamentally strengthen its technological competitiveness by securing technology and infrastructure and to expand its business areas.
