Expectations Grow for 'K-Battery Avengers' Led by Chung Eui-sun

[Asia Economy Reporters Hyewon Kim and Soyeon Park] The heads of South Korea's four major conglomerates?Samsung, Hyundai Motor, LG, and SK?have all turned their attention to the battery business, known as the "second semiconductor." Leading the charge is Chung Euisun, Executive Vice Chairman of Hyundai Motor Group, the largest battery consumer. The three battery companies?Samsung SDI, LG Chem, and SK Innovation?are forming a competitive supply structure while consistently sending "love calls" to Hyundai Motor Group.

According to the business community on the 19th, Executive Vice Chairman Chung will meet LG Group Chairman Koo Kwang-mo on the 22nd. The meeting will take place at LG Chem's Ochang plant in Cheongju, Chungbuk. This site is LG Chem's core battery production base, holding the number one global market share in batteries. A month ago, the meeting between Executive Vice Chairman Chung and Samsung Electronics Vice Chairman Lee Jae-yong also took place at Samsung SDI's battery business site. It is highly likely that the upcoming meeting between Executive Vice Chairman Chung and SK Group Chairman Chey Tae-won, currently being scheduled, will also be at one of SK Innovation's battery plants. The heads of the three battery companies are directly stepping forward in the competition to "court Hyundai Motor."

Meetings between group heads for business purposes naturally attract attention as they could lead to future collaborations between the companies. In particular, LG Chem is already supplying batteries to Hyundai Motor's electric vehicles and is pushing forward with the establishment of a battery joint venture between the two companies, raising expectations that the meeting between the two leaders could deepen their mobility cooperation. LG Chem recently secured a secondary supply contract for batteries for Hyundai Motor Group's dedicated electric vehicle platform, E-GMP, strengthening the battery alliance between the two companies. Hyundai Motor and LG Chem have been scouting candidate sites in Asia, including South Korea, to jointly build a battery production plant, but the project has been somewhat delayed due to the COVID-19 pandemic.

The global automotive industry is increasingly strengthening alliances with multiple battery companies to secure a stable supply chain for electric vehicle batteries. The battery business is technology-intensive, making it difficult to produce competitive products without close cooperation. Additionally, as global interest in eco-friendly vehicles rises, there is a severe shortage of batteries, which are key components.

In the same context, Executive Vice Chairman Chung is expected to meet Chairman Chey soon. SK Innovation has also aggressively entered the next-generation electric vehicle battery supply competition ordered by Hyundai Motor Group while supplying batteries to Kia Motors' electric vehicles. It is anticipated that cooperation will continue with Kia Motors in the field of used battery recycling.

Securing battery safety, price competitiveness, and a stable supply chain is essential for operating an electric vehicle business, making smooth partnerships with the three domestic battery companies crucial for Hyundai Motor Group. Some automakers are already complaining about battery shortages. It is forecasted that a "battery crisis" caused by a shortage of battery supply will occur as early as next year or at the latest by the year after next.

A battery industry insider said, "With forecasts that the battery market will form a scale comparable to semiconductors within the next five years, the heads of major groups are moving directly," adding, "It is seen as a positive signal that Hyundai Motor, a domestic automaker, is taking the lead and that the four major groups are discovering future growth engines."

Hyundai Kia Motors plans to launch a total of 44 eco-friendly vehicles by 2025, more than half of which?23 models?will be pure electric vehicles.

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