SEOUL, Sept. 8 (Korea Bizwire) — Hyundai Motor Group and electric vehicle (EV) battery maker SK Innovation Co. said Tuesday they will cooperate in the EV battery business for win-win synergies.
The battery partnership comes as Hyundai and SK Innovation seek to foster future mobility solutions and EV batteries as new growth drivers, respectively.
The two companies recently signed a memorandum of understanding to collaborate in the sale, management services and recycling of EV batteries, Hyundai said in a statement.
“The partnership with SK Innovation will help strengthen the EV competitiveness of Hyundai Motor Group and promote the spread of EVs,” a Hyundai official said in the statement.
In July, Hyundai Motor Group Executive Vice Chairman Chung Euisun and SK Group Chairman Chey Tae-won met to discuss cooperation on next-generation EV battery technologies, power management chips, and the “battery-as-a-service (Baas)” platform.
Baas is a breakthrough business model mainly for EV battery rental and replacement services.
Chung and Chey also discussed ways to strengthen the charging infrastructure for all-electric vehicles and hydrogen fuel-cell EVs using SK Group’s gas stations and charging stations.
Currently, Hyundai Motor Co. and its affiliate Kia Motors Corp. use SK Innovation Co.’s lithium ion batteries for their plug-in hybrid vehicles and all-electric models.
Moreover, Hyundai designated SK Innovation as a major battery supplier for an electric car that Hyundai is pushing to mass produce based on its own EV platform, called the electric-global modular platform (E-GMP), starting 2021.
At the end of last year, Hyundai Motor Group signed a 10 trillion won (US$8.2 billion) deal with SK Innovation to purchase batteries for 500,000 EVs over the next five years.