Lee Jae-yong and Chung Eui-sun's First Official Meeting... The Business World's 'Big 2' Lead the Future of Cars Together

[Asia Economy Reporter Kim Hyewon] On the 13th, Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Group Executive Vice Chairman Chung Eui-sun held a sudden meeting to review the trends in next-generation all-solid-state battery technology for electric vehicles, known as the "dream battery." This is interpreted as a demonstration of their alliance commitment to fostering the electric vehicle industry. Although both companies cautioned against overinterpreting the meeting as being aimed at a specific business, it is extremely rare for the top two business leaders in the industry to make a public appearance for business discussions, leading the business community to anticipate concrete follow-up plans. Especially amid the global supply chain disruptions caused by the COVID-19 pandemic and the rising trend of protectionism worldwide, there is keen interest in a new cooperative model bridging generations between Korea’s leading companies.

On that day, Executive Vice Chairman Chung visited Samsung SDI’s Cheonan plant to meet Vice Chairman Lee, hear his opinions on the direction of all-solid-state battery technology, and share updates on new technologies. Chung has previously visited various new technology sites and exchanged views with domestic and international stakeholders to secure future leadership, and Hyundai Kia Motors officially stated that this visit is a continuation of those efforts. A Hyundai Kia Motors official said, "Since new technologies could emerge even before all-solid-state batteries, it is not true that this visit means immediate cooperation with Samsung on all-solid-state batteries."

In fact, all-solid-state battery technology is considered a future technology expected to be commercialized around 2030. The next-generation battery, all-solid-state battery, replaces the liquid electrolyte between the battery’s cathode and anode with a solid electrolyte, enabling large capacity and enhanced safety compared to conventional lithium-ion batteries. Within Samsung Group, the affiliate Samsung SDI is focusing its technical capabilities on this area as one of its future growth engines.

Although not immediate, this meeting between the two leaders is expected to deepen collaboration not only in batteries but also in future mobility businesses such as autonomous driving electronic components. Electric vehicles are a core sector of the "Korean New Deal" policy, which the Moon Jae-in administration has been intensively promoting as part of future vehicles. In his special speech on the third anniversary of his inauguration, President Moon reaffirmed his strong commitment to driving the growth of three new industries: system semiconductors, bio-health, and future vehicles.

From Hyundai Kia Motors’ perspective, which is planning a two-track strategy of electric vehicles and hydrogen fuel cell vehicles in the future vehicle sector, securing next-generation battery technology and a stable supply chain is essential to becoming a global leader. A business community official commented, "The COVID-19 pandemic revealed the limitations of the global value chain (GVC), and both Samsung and Hyundai Kia Motors have experienced significant damage due to supply chain disruptions. To reduce external dependence and prioritize stability over efficiency, they will ultimately create a collaborative business model."

According to the global electric vehicle specialized media EV Sales, Hyundai Kia Motors sold a total of 24,116 pure electric vehicles in the first quarter of this year, ranking fourth after Tesla (88,400 units), Renault-Nissan Alliance (39,355 units), and Volkswagen Group (33,846 units). Hyundai Kia Motors plans to launch a total of 44 eco-friendly vehicles by 2025, with more than half, 23 models, being pure electric vehicles.

Currently, LG Chem batteries are mainly installed in Hyundai Motor’s electrified models, while SK Innovation batteries are primarily used in Kia’s electrified vehicles. SK Innovation was selected as the primary battery supplier for pure electric vehicles to be mass-produced early next year, with a contract worth about 10 trillion won for approximately 500,000 units over five years. Hyundai Kia Motors plans to place three additional orders for batteries to be installed in pure electric vehicles.

A Hyundai Motor Group official said, "Hyundai Kia Motors is researching related technologies to realize optimized battery performance required for the world’s highest-performance electric vehicles. This visit was to exchange opinions on the direction of next-generation battery technology and share updates on new technologies." A Samsung Group official said, "Samsung’s all-solid-state battery is one of the next-generation battery technologies that is structurally solid and stabilized. We hope cooperation between the two companies will expand to drive innovation in the mobility sector."

This content was produced with the assistance of AI translation services.