- Local news reports from South Korea claim that Hyundai has assembled a special team of top executives and engineers to spearhead in-house battery development.
- The initiative was reportedly started after BYD showcased its megawatt charging platform in China in March.
- In-house battery production has several advantages in terms of software integration and costs, but requires deep technical and manufacturing expertise.
The Hyundai Motor Group is planning to develop and manufacture its own electric vehicle battery cells amid growing concerns of falling behind in the battery race, according to a local news report from South Korea. The decision was reportedly made after Chinese EV and battery giant BYD showcased its megawatt charging platform recently.
According to Korea’s The Chosun Daily, Hyundai Motor Group has created a dedicated team under its manufacturing division to spearhead its in-house battery development efforts. The so-called “B Task Force” includes the automaker’s top engineering experts, including Jung Jun-cheul, the head of manufacturing and Choi Jae-hoon, the head of battery development.
Hyundai and Kia did not immediately respond to InsideEV’s request to confirm the local news report.
The automaker already has an in-house battery team. But it mainly serves as a liaison between the company and its battery suppliers, LG Energy Solution and SK On, for integrating their batteries into Hyundai, Kia and Genesis models. While those efforts are expected to continue, Hyundai is clearly now seeing the need to invest in its own battery technology.
Photo by: Hyundai
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The South Korean automaker isn’t the first to bring battery development in-house. Tesla makes its own 4680 cells used in the Cybertruck and Model Y, even though Panasonic continues to be one of its major suppliers. BYD famously started as a battery company in 1995 and it does not outsource battery packs. It makes its own “Blade” batteries for EVs and PHEVs. Toyota also produces EV batteries in Japan, and it recently expanded that effort overseas. It opened its $14 billion battery plant in North Carolina early this year, and that factory will make batteries in-house for hybrids, PHEVs and EVs.
In-house battery development has myriad advantages. It allows automakers to make batteries optimized for the car’s software and architecture. After scaling up, cost advantages can be huge, as it can eliminate supplier fees and also give carmakers more control over raw materials and logistics. It can also fast-track research and development and reduce exposure to supply-chain bottlenecks. But it requires immense upfront investment and manufacturing expertise that traditional battery companies like LG Energy Solution have honed over decades.
That said, the report adds that Hyundai’s move was in response to the hyper-fast charging battery that BYD revealed in March. BYD showcased its Super e-Platform in China, which supports 1,000 volts, 1,000 amps of current and charges at 1,000 kilowatts. The platform allows the Han L and Tang L EVs to charge in just 5 minutes.
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