SK Innovation Electric Vehicle Battery Selected to Supply Hyundai Motor's Next-Generation Platform

Selected as the 3rd Exclusive Model Supplier
Won 3rd Batch Orders Following the 1st
Total Exceeding 30 Trillion Won
Domestic and International Market Share Expected to Increase

[Asia Economy Reporter Choi Dae-yeol] SK Innovation has been virtually selected as the battery supplier for Hyundai Motor's next electric vehicle platform.

According to the automotive and battery industries on the 1st, Hyundai Motor and Kia recently chose SK Innovation's batteries for the third dedicated electric vehicle (Ioniq 7). After starting the bidding process in September last year and reviewing for over five months, they recently decided to select SK Innovation's products and plan to notify them soon. The third supply volume is valued at around 20 trillion KRW, which is more than the previous first and second supply volumes (first: 10 trillion KRW, second: 16 trillion KRW).

Hyundai Motor Group has been developing a vehicle platform dedicated to electric vehicles (Electric-Global Modular Platform, E-GMP) and has been deciding on suppliers who can provide suitable battery products. SK Innovation, having been selected as the first supply vendor, will also secure the third supply volume this time, enabling it to increase its market share domestically and internationally. The batteries supplied in the first phase are used in the Ioniq 5, which will be released this year. With the additional supply confirmed this time, the total volume SK Innovation is expected to supply to Hyundai Motor Group is estimated to exceed 30 trillion KRW. Hyundai Motor Group ranks approximately fourth worldwide in electric vehicle sales.

Rendering images of Hyundai Motor Company's electric vehicle exclusive brand Ioniq 5~7 [Image source=Yonhap News]

SK Innovation Competes with LG Energy Solution and Samsung SDI for Orders
Latecomer Accelerates Technology Development and Aggressive Sales Strategy... Market Share Increases

The industry has been paying close attention to who would secure the third E-GMP supply volume. The final candidates for this bidding included SK Innovation, LG Energy Solution (LG Chem), Samsung SDI, and CATL. Previously, the first and second supply volumes were contracted with domestic battery companies SK Innovation, LG Chem, and CATL, leading to many expectations that Samsung SDI, another domestic battery powerhouse, would win the third contract. Although Samsung SDI ranks within the global top five in electric vehicle battery supply, it had no transactions with Hyundai Motor Group, so it reportedly put significant effort into securing the third supply volume. However, Samsung SDI's prismatic battery format did not match Hyundai's preference for pouch-type batteries, and thus it was ultimately not selected.

However, since the final notification has not yet been made, SK Innovation cautiously responded, saying, "We understand that the final decision has not been made yet." Hyundai Motor Group also stated, "We plan to select multiple suppliers for the third batch of next-generation electric vehicle batteries, and the selection process is currently underway."

Among the three domestic battery companies, SK Innovation, considered a latecomer, is actively securing customers and expanding its market share. According to SNE Research, SK Innovation entered the global top 10 in cumulative battery usage for the first time in 2019 and rose to around sixth place last year. Its market share last year was 5.4%, narrowly behind Samsung SDI's 5.8%.

The Hyundai Ioniq 5, which will be sequentially launched starting in Europe in March, is expected to have significant sales as it incorporates advanced technology into the new dedicated platform. SK Innovation's revenue from the mid-to-large battery segment doubled to 1.6 trillion KRW last year compared to the previous year. It is expected to achieve mid-3 trillion KRW in sales this year and around mid-5 trillion KRW next year.

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