This Time, Chung Euisun Met Koo Kwangmo... The Strengthened 'K-Battery Alliance'

First Exclusive Meeting at LG Chem Plant in Ochang

[Asia Economy Reporter So-yeon Park] Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group, and Koo Kwang-mo, Chairman of LG Group, held a sudden meeting on the 22nd at LG Chem's Ochang plant in Cheongju, Chungbuk, to discuss the direction of the next-generation electric vehicle business. Following his meeting with Samsung Electronics Vice Chairman Lee Jae-yong last month to discuss the battery business, Executive Vice Chairman Chung is taking the lead in strengthening the battery alliance by consecutively meeting Chairman Koo as well. Executive Vice Chairman Chung is also scheduled to meet SK Group Chairman Chey Tae-won soon.

According to Hyundai Motor Group and LG Group, Executive Vice Chairman Chung and Chairman Koo toured the production facilities at LG Chem's Ochang plant in the morning and had lunch together. This was their first exclusive meeting. They reportedly toured the electric vehicle battery development site and exchanged opinions on the future battery business. Accompanying them from Hyundai Motor Group were Albert Biermann, President of R&D Headquarters, and Seo Bo-shin, President in charge of products. Through this official meeting between the heads of the two groups, the business plans of Hyundai Motor and LG Chem, which already have an electric vehicle cooperation relationship, are expected to be concretized.

Hyundai electric vehicles mainly use LG Chem batteries. LG Chem was also selected as the battery supplier for electric vehicles to be released in 2022. LG Chem is not only the top domestic battery manufacturer but also ranked first globally last quarter (according to SNE Research). The industry views Hyundai, which is expanding its electric vehicle supply, as moving to secure battery dominance by strengthening cooperation with LG Chem, the number one domestic battery company. Hyundai Kia Motors is aggressive in electric vehicle production and sales, ranking fourth globally with 24,116 electric vehicles sold in the first quarter of this year. Global automakers such as Volkswagen have recently established joint ventures (JVs) with battery companies or expanded supply cooperation.

Following meetings with Vice Chairman Lee and Chairman Koo, Executive Vice Chairman Chung is also expected to meet Chairman Chey soon. It is understood that close communication between Chairman Chey and Executive Vice Chairman Chung has been facilitated under the assistance of Chey Jae-won, Senior Vice President leading SK Group's battery division. In particular, Hyundai Motor Group and SK Group are expected to expand cooperation in the 'BaaS (Battery as a Service)' field, which focuses on creating new platforms from battery recycling. Recently, Kia Motors signed a memorandum of understanding (MOU) with SK Innovation for battery recycling and business model development. Kia provides used electric vehicle batteries to SK Innovation, and SK Innovation jointly develops battery recycling technologies and various business models to build an eco-friendly ecosystem with Kia. A business insider said, "The heads of the groups are directly involved in future business areas, overseeing technological innovation and new business model development," adding, "Even in the economic downturn caused by the pandemic, there is hope that solutions will emerge if globally competitive companies unite."

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