Hyundai Motor, LG Energy Solution Team Up to Lease, Recycle EV Batteries

This photo provided by KST Mobility, the operator of Macaron Taxi, shows its electric taxi.

SEOUL, Feb. 18 (Korea Bizwire) — Hyundai Motor Co. said Thursday it will partner with LG Energy Solution Ltd. and a local taxi operator for a pilot battery lease program for electric taxis.

The nation’s largest automaker and battery maker and KST Mobility, the operator of Macaron Taxi, signed a memorandum of understanding at Hyundai’s R&D Center in Hwaseong, about 40 kilometers south of Seoul, for the battery lease program.

Under the deal, Hyundai Motor will offer 20 Kona EVs to KST Mobility, which will use the batteries on a monthly rental program.

Hyundai Glovis Co., the automaker’s logistics affiliate, will purchase the battery from KST Mobility and then lease it back to the taxi operator, which could lower the upfront cost of the vehicle purchases.

Lithium-ion batteries are the most essential component in EVs, accounting for 30-40 percent of the total costs.

The standard Kona EV is priced at less than 50 million won (US$45,000), and the final prices can go down with government subsidies.

Hyundai Motor and LG Energy Solution will also collaborate to recycle batteries that are no longer usable in vehicles for the energy storage system (ESS) in EV charging stations.

The ESS can store extra energy in the daytime for use at later times, which could raise energy efficiency at charging stations.

Hyundai, which seeks to expand its EV lineup, said it aims to create a cycle of battery usage known as “Battery as a Service” in partnership with industry players.

In September 2020, Hyundai Motor signed a battery rental and lease program with SK Innovation Co., which provides batteries to its affiliate Kia Corp.’s Niro EVs.

(Yonhap)