Hyundai Motor Group signed an agreement with local battery manufacturer SK Innovation Company to develop batteries for a new range of Hyundai and Kia hybrid electric vehicles to be launched from 2024.
SK Innovation already supplies batteries for the Kia Soul EV and had previously signed agreements to supply batteries for the forthcoming Hyundai Ioniq 6 and Kia EV6 which will be based on the group’s E-GMP dedicated EV platform.
Hyundai will work closely with SK Innovation throughout the entire process from design to production and quality assurance. The two companies aim to develop a safe and cost efficient battery system best suited for hybrid models.
SK Innovation is South Korea’s second largest manufacturer of electric vehicle (EV) batteries behind LG Energy Solution.
LG Energy Solution was the manufacturer of the batteries that caused the expensive recall of some 82,000 Hyundai EVs worldwide earlier this year. The supplier agreed to pay 70% of the estimated US$900m cost of replacing the batteries.
Earlier this month LG Energy Solution and SK Innovation settled a long-standing technology infringement dispute in the US with SK Innovation agreeing to pay its domestic rival US$2bn in compensation.