Chairman Zeng Yu-qun and Chairman Chung Eui-sun met to talk about increasing the supply of batteries for electric vehicles.
On the fifth, Chung Eui-sun, chairman of the Hyundai Motor Group, and Zeng Yuqin, chairman and CEO of CATL, the biggest battery manufacturer in China, were finally made public. According to reports, Chairman Zeng Yu-qun visited Korea at the beginning of last month and spoke with Chairman Chung Eui-sun of the electric car battery industry about ways to collaborate.
After around three months from November of last year, the two companies’ leaders finally met. Working-level executives are in Korea this month. The two businesses in North America are anticipated to work closely together and expand their battery supply.
According to industry estimates, Hyundai Motor Group purchased hundreds of billions of won’s worth of batteries from CATL last year. This year, over 1 trillion won is probably expected. This is due to the fact that the second-generation Kia Ray electric car, which is set to be presented in the second half, intends to import and use lithium iron phosphate batteries in the form of finished goods, while the new Kona electric car employs CATL batteries.
Cells are imported and assembled into packs for high-performance ternary batteries by Webasto and H Green Power. Due to the low energy density of lithium iron phosphate batteries, ‘Cell To Pack’ (CTP: Cell To Pack) technology from CATL is required. Whilst using battery packs that are imported from China, this is the situation. It’s the same with the Torres EVX from KG Mobility.
The fact that CATL just entered the US market via Ford and did so without complying with the US Inflation Reduction Act is particularly notable (IRA). In Michigan, Ford intends to construct a lithium iron phosphate battery factory. The local state government also confirmed a subsidy worth 2.24 trillion won. It is reported that Hyundai Motor Company is investigating similar strategies to work with CATL.
An insider in the sector claimed, “We can considerably enhance local electric car production if we manage a battery plant in partnership with CATL in the US.” The amount that domestic battery firms will take on can be decreased by that much if Hyundai Motor Company works with CATL.
Future battery purchases from Hyundai Motor Group are anticipated to come from a variety of sources, including the US Inflation Reduction Act (IRA) and the European Union’s Core Raw Materials Act (CRMA). In East Asia, CATL is located in China. In Southeast Asia, a battery joint venture with LG Energy Solutions (HLI Green Power in Indonesia) is located. In Korea and North America, SK On and LG Energy Solutions are located.
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