Last month, Hyundai Motor Company and Hyundai Capital launched Battery Care Lease, a specialized financial product for the Casper Electric, Hyundai’s compact EV. (Image courtesy of Hyundai Motor Co.)
SEOUL, Sept. 18 (Korea Bizwire) – As the global electric vehicle (EV) market navigates through a temporary dip in demand, South Korean automakers and financial institutions are introducing innovative products to spark consumer interest.
These offerings, centered around guaranteeing the residual value of EV batteries, are reshaping the future of EV ownership.
At the heart of this trend is the advancement in Battery as a Service (BaaS) technology, which allows for comprehensive lifecycle management of EV batteries.
Last month, Hyundai Motor Company and Hyundai Capital launched Battery Care Lease, a specialized financial product for the Casper Electric, Hyundai’s compact EV.
This product factors the residual value of the battery into the lease price, reducing monthly payments for consumers.
“The Battery Care Lease includes our Battery Life Care service, developed in partnership with LG Energy Solution,” a Hyundai Capital representative explained.
“Customers can monitor their vehicle’s driving patterns, charging habits, and battery condition through our mobile application.”
Upon lease expiration, LG Energy Solution collects the vehicle’s battery. These used batteries are then repurposed for energy storage systems or EV charging stations, or recycled to extract valuable materials like lithium and nickel for new batteries.
LG Energy Solution’s B-Lifecare service exemplifies the sophistication of BaaS technology. (Image courtesy of LG Energy Solution)
LG Energy Solution’s B-Lifecare service exemplifies the sophistication of BaaS technology. Using cloud-based data analysis, it predicts battery aging and lifespan, offering optimal management advice to EV owners.
As of late July, approximately 10,000 vehicles were utilizing this service, with over 14,000 cumulative applications.
“Our technology can predict battery condition with less than 2% error rate,” an LG Energy Solution spokesperson claimed. “This precision not only enhances safety but also helps maintain the battery’s value over time.”
Industry analysts see these developments as crucial in addressing consumer concerns about EV adoption.
“As the automotive market shifts towards electric vehicles, technologies that make EVs cheaper, more reliable, and safer will drive demand,” said a market expert who requested anonymity due to the sensitivity of the topic.
“We expect to see more financial products leveraging battery residual value in the near future.”
Kevin Lee (kevinlee@koreabizwire.com)
