Hyundai, Kia To source EV Batteries From SK Innovation:Report

The Korean-based SK Innovation will be the only battery cell supplier for the Hyundai Group

Hyundai Motors has tied up with the Seoul-headquartered SK Innovation to supply electric battery cells for the next 4-5 years as per a report. The deal is said to be worth more than 10 trillion won ($8.6 billion). However, there is no official word from Hyundai, Kia or SK Innovation on this development.

Initially, SK Innovation will be supplying battery cells for around 5 lakh planned electric vehicles of the South Korean auto giant. The first electric crossover to be based on the E-GMP platform from Hyundai will be produced at Ulsan, South Korea in the initial quarter of 2021. As per reliable sources, SK Innovation will be supplying the battery cells – 800 volt battery technology – for this vehicle.

The crossover will be first launched in the European market before being rolled out to the USA and Korean market as per reports. The association between Hyundai and SK Innovation is not new as Hyundai’s premium luxury brand, Genesis has already selected SK Innovation to supply battery cells to power its vehicles.

Lately in October, Hyundai Motor said that it would be introducing 16 electric vehicles by 2025 which would help it achieve EV sales of 5,60,000 units – a 10 per cent of its projected overall targets.

As per industry sources, the basic design elements of the E-GMP platform are done and the company has now completed testing the same at its research and development centre at Hwaseong, Southwest of Seoul.

Looking at the preparations going on at Hyundai, the carmaker is certainly eying a big chunk of pie from the electric vehicles in future. Its subsidiary, Hyundai Mobis has laid the foundation of a spare parts plant in Ulsan. The facility will be developing components specific to electric vehicles.