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Hyundai Motor Group Signs New Memorandum with SK to Secure EV Battery Source

In November 2022, the Hyundai Motor Group (HMG) signed a memorandum of understanding (MOU) with SK On Co., Ltd. This leading electric vehicle (EV) battery manufacturer is no stranger to the automotive group, parent of Kia Corp, having agreed to collaborate back in September 2020 to design new forms of battery management services and battery reuse and recycling. For the new year and upcoming models, HMG and Kia have many EVs planned between now and 2030. For that, they need a lot of EV batteries, and this new MOU between HMG and SK will help secure a fresh supply of EV batteries, especially in North America.

“Through the EV battery MOU, we will be able to further accelerate our efforts to secure EV leadership in the North American market…We expect the stable supply of EV batteries from SK On will also enable us to contribute to emissions reduction and meet climate goals in the market.” – Executive Vice President Kim

EV batteries can sometimes get a bit of a bad rep in the auto market, especially amongst consumers. Many Americans are still a little timid when it comes to going green and fully electric. Stopping at a gas station is so much easier with services around just about every corner, and it’s a lot more probable that a consumer would stop somewhere for a few minutes versus 20 or 30 minutes. When it comes to recharging a plug-in hybrid electric vehicle (PHEV) or EV, that’s how long it can take to actually get a worthwhile charge, and people don’t really have that kind of time on the way to work or an appointment/meeting.

On the other end of the spectrum, what happens to EV batteries once they’re spent raises more concerns. With people all over the world becoming more environmentally conscious and trying to save the planet, just tossing EV batteries in the nearest landfill isn’t sustainable or even a good solution. That’s why the first collaboration between HMG and SK Innovation took place. Taking used EV batteries and placing them into new forms of Energy Storage Systems (ESS) made these batteries reusable and gave them a new purpose. Kia Corp furthered this venture with Deutsche Bahn to find more ways to recycle EV batteries and use them in another application, such as powering micro smart grids or ESS made of dismantled EV battery packs.

Finding new ways to save and use EV batteries expended in EVs is great, but actually finding the EV batteries and resources for future models is just as important. Kia has plans to release two EV models a year between now and 2027, for a total of 14, according to the Kia 2022 CEO Investor Day in March 2022. Furthermore, HMG is increasing its investment into EV production with a new Metaplant in Georgia with an initial annual capacity of 100,000 PBVs a year, with the intention to increase production to 150,000 units annually. Operations are expected to begin by 2025, making this new MOU all the more important to hit a goal of 3.23 million full EVs sold annually by 2030.Interested to learn more about HMG and Kia plans for a greener future? Follow along with us on Miami Lakes Automall social media.

Photo Source/Copyright: businesskorea.co.kr