Kia Corporation has decided to use batteries produced by Chinese manufacturer Contemporary Amperex Technology Company Ltd (CATL) for the domestic version of its new EV5 battery electric vehicle (BEV), according to local reports citing industry sources.

Earlier this month, the South Korean automaker unveiled images of the domestic version of the new EV5 SUV ahead of its planned launch in its domestic market in September. The model, based on its parent company Hyundai Motor Group’s Electric-Global Modular Platform (E-GMP), will join an expanding range of Kia battery-powered vehicles, which includes the EV3, EV4, EV6, EV9, and the PV5 minibus/van.

According to the sources, Kia has decided to use CATL’s nickel cobalt manganese (NCM) batteries for the domestic version of the model, to be produced at the Kia Autoland Gwangju plant, rather than BYD’s cheaper lithium iron phosphate (LFP) batteries, which are used in the EV5s already produced and sold in China.

The sources claim that CATL’s NCM batteries, which are said to be cheaper than the equivalents produced by South Korea’s top three battery manufacturers, were seen as more suitable for the South Korean market.

Kia already uses CATL’s NCM batteries in its Niro EV, Ray EV, and PV5. Domestic suppliers such as LG Energy Solution, Samsung SDI, and SK On have stepped up their overseas expansion due to rising competition from the Chinese and are also accelerating the introduction of cheaper LFP batteries.