Hyundai Motor and SK Alliance's First Result... Joining Hands to Develop Electric Vehicle Battery Ecosystem

Hyundai Kia Motors and SK Innovation
Verified Cooperation System Across Various Fields
From Sales and Management Services to Recycling
"Aiming for Virtuous Cycle Utilization of BaaS"

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group and SK Group have joined hands to develop the electric vehicle battery industry ecosystem. They plan to establish a cooperative system covering the entire battery lifecycle, from sales to recycling. This collaboration is particularly significant as it marks the first outcome of the 'Battery 3 Companies' series of meetings initiated by Hyundai Motor Group Vice Chairman Chung Eui-sun since May.

Hyundai and Kia Motors announced on the 8th that they will verify a cooperative system with SK Innovation in various fields related to electric vehicle batteries, including sales and management services such as leasing and rental, as well as reuse and recycling. The goal is a virtuous cycle utilization considering the battery lifecycle, named 'BaaS (Battery as a Service)'. Accordingly, both companies expect more diverse collaborations compared to the existing mobility-battery company partnerships focused mainly on battery supply. ▶See Asia Economy front page, July 29 edition

Both parties agreed on the need to create added value throughout the electric vehicle battery lifecycle and to enhance eco-friendliness. Through this cooperation, they plan to achieve synergy effects such as ▲establishing a virtuous cycle system of resources from recycling to production and strengthening the stability of material supply ▲reducing carbon dioxide emissions ▲maximizing added value through optimal design linking electric vehicles and battery reuse.

First, the two companies are conducting a demonstration cooperation process to collect and verify battery packs installed in Kia's Niro EV. Key areas include 'battery reuse,' which repurposes batteries no longer suitable for vehicle use for other applications such as energy storage systems (ESS), and 'battery recycling,' which extracts more than 90% of economically valuable metals such as lithium, nickel, and cobalt from vehicle batteries. Starting with the Niro EV this year, the 'BaaS' related cooperation, which has been activated, is expected to expand to next-generation electric vehicle models to be launched from next year based on the dedicated electric vehicle platform E-GMP.

This cooperation, which had been discussed for a long time, gained momentum in early July when Vice Chairman Chung visited SK Innovation's Seosan battery plant and met with SK Group Chairman Chey Tae-won. After the two leaders reached a broad agreement, it is known that discussions among working-level officials have continued until recently.

Industry insiders are paying attention to this as the first result of the 'K Battery Alliance' built by Vice Chairman Chung through direct visits to Samsung SDI, LG Chem, and SK Innovation plants. There is considerable expectation that this will be the first step to producing tangible results for K-Mobility and the Green New Deal. The close relationship between Hyundai Motor and SK is also expected to deepen further, centered on the future mobility industry. Earlier this month, at SK Group's social value festival 'Social Value Connect (SOVAC) 2020,' Vice Chairman Chung sent a direct message of support, conveying the amicable relationship between the two companies.

Jiyoung Jo, President of Hyundai Motor's Strategy and Technology Headquarters, said, "Collaboration with SK Innovation is significant as the first step to maximizing synergy through cooperation between mobility and battery companies," adding, "It will play a positive role not only in strengthening Hyundai-Kia's electric vehicle competitiveness but also in expanding the supply of eco-friendly electric vehicles."

Jidong Seop, Head of SK Innovation's Battery Business, also emphasized, "Through building a close cooperative system, both companies will seek new business opportunities across the entire battery value chain and contribute to enhancing competitiveness in the Green New Deal and future mobility industries."

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