Hyundai Motor plans to source electric hybrid vehicle batteries from Chinese manufacturer Contemporary Amperex Technology Co Ltd (CATL), according to local reports citing company sources.
An official at Beijing Hyundai reportedly said CATL was the first Chinese supplier to be selected by Hyundai for this type of battery pack and was chosen mainly for its competitiveness.
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CATL will allow Hyundai to diversify its supply base for this technology at a time when all carmakers in the country are coming under pressure to produce electric and hybrid vehicles as the government grapples with the problem of air pollution in its main cities.
CATL, based in Fujian province, will initially supply batteries for Hyundai's plug in hybrid Sonata sedans that are scheduled to be launched in early 2018.
Hyundai has stepped up its hybrid and electric vehicle launch programme in China, starting with an electric version of an existing sedan model scheduled to be launch this year.
Its sales in China dropped by 44% to 56,000 units in March, and by 14% in the first quarter of the year, as anti-Korean sentiment escalated in the country after Seoul agreed to deploy the US backed THAAD anti missile system.
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By GlobalDataThis is forcing Hyundai to cut output at its local plants, a worrying development as the company as it prepares to open is fifth assembly plant in the country in the third quarter of the year, in the city of Chongqing.
