Hyundai Motor Group recently launched a dedicated organization to strengthen its competitiveness in electric vehicle batteries. It is interpreted that following the surprise in the global automobile market when Chinese electric vehicle manufacturer BYD developed technology that allows for 400 km of driving with a 5-minute charge, Hyundai Motor Group determined that relying solely on external battery manufacturers could lead to losing market share.
According to completed car manufacturers on the 9th, Hyundai Motor Group established a 'B Task Force (TFT)' under its institutional sector, effective as of the 7th. Hyundai Motor Group explained that it has built an integrated work system at the company-wide level across the entire value chain to enhance medium- to long-term battery competitiveness.
The B TFT includes numerous battery specialists within Hyundai Motor Group. The TFT leader is Executive Vice President Jeong Jun-cheol, head of the manufacturing sector, and he is joined by Executive Vice President Kim Chang-hwan, responsible for electrified energy solutions, and Managing Director Choi Je-hoon, head of the battery development center. Other battery-related leaders such as Lee Woo-sung, head of the electrified energy solutions promotion office, Seo Jeong-hoon, head of battery design, and Kim Dong-geon, head of battery cell development, are also included.
Hyundai Motor and Kia are currently sourcing the batteries installed in their electric vehicles from external manufacturers such as LG Energy Solution and SK On. While there is an internal battery development organization within the group, it primarily plays a role in collaborating with battery manufacturers like LG Energy Solution and optimizing external products for completed vehicles.
Hyundai Motor's Kona Electric, Casper Electric, and Kia's EV3 are among some models equipped with batteries developed in conjunction with LG Energy Solution. Hyundai Motor Group and LG Energy Solution established a joint venture named HLI Green Power in Indonesia last July.
The establishment of a dedicated organization by Hyundai Motor Group for in-house battery development and upgrading technology levels is interpreted as a response to the heightened sense of urgency following BYD's announcement of new electric vehicle battery charging technology last month. BYD has grown from starting as an electric vehicle battery manufacturer to expanding into complete vehicles.
Wang Chuanfu, chairman of BYD, announced on the 17th of last month at the company's headquarters in Shenzhen, China, that they have developed a 'super e-platform' that allows for 400 km of driving with a 5-minute charge. This technology surpasses that of global competitors. For instance, Tesla's Supercharger system charges for 15 minutes to drive 320 km, and the latest technology from Mercedes-Benz also can only drive 325 km after a 10-minute charge.
News that BYD has developed technology that could make it a game changer in the global electric vehicle market shook the global automobile market at the time. The day after the announcement, on the 18th of last month, Tesla's stock fell by 5.3% on the New York Stock Exchange.
If automobile manufacturers develop batteries in-house, they can reduce purchase expenses and lower the selling price of electric vehicles. BYD, which has overtaken Tesla to become the global number one in electric vehicle sales, is also encroaching on the market by leveraging its cost-competitive vehicles, thanks to its in-house battery technology. An industry insider noted, "Relying on external manufacturers for batteries limits the ability to lower selling prices. This is why companies like Mercedes-Benz and Hyundai Motor Group are committing to internalizing battery technology."