Hyundai Motor Company and Kia Corporation on September 25 announced a partnership with Hyundai Steel and EcoPro BM to develop advanced lithium iron phosphate (LFP) battery cathode materials. This collaboration is part of a broader four-year initiative supported by the Korean Ministry of Trade, Industry, and Energy, aimed at boosting Korea’s competitiveness in EV battery production and reducing reliance on foreign imports, especially from China.
Developing a New Approach to LFP Battery Cathode Materials
LFP battery cathode materials are essential components for EV batteries, traditionally produced by combining lithium with precursor materials like phosphate and iron sulfate. However, Hyundai and its partners aim to simplify and revolutionize this process by directly synthesizing cathode materials without the need for creating a separate precursor. The new method introduces phosphate, iron powder, and lithium simultaneously, which eliminates a production step, thereby lowering costs and reducing hazardous emissions.
According to Soonjoon Jung, Vice President and Head of Electrification and Driving Materials Development Group at Hyundai Motor and Kia, the project reflects Hyundai’s commitment to advancing EV technology:
“To meet future demand in the EV market, rapid technological development and effective battery supply chain establishment are essential. Through this project, we aim to reduce import reliance and enhance the technological competitiveness of the country and Hyundai Motor Group by internalizing necessary technologies,” he said.
By working with Hyundai Steel, the company plans to produce high-purity iron powder derived from recycled iron, which will then be used by EcoPro BM to synthesize the LFP battery cathode material. The goal is to develop batteries that offer fast-charging capabilities and improved performance, even in low-temperature conditions. This development is critical as it integrates expertise from the steel, battery, and automotive sectors, further positioning Hyundai and Kia as key players in the evolving EV market.
Plans for In-House Battery Production by 2027
In addition to advancing LFP battery materials, Hyundai Motor is preparing to internalize battery production by 2027. The company is planning to establish its first EV battery production lines at its new R&D center in Anseong, Gyeonggi Province. These production lines will have a capacity of 1 to 2 gigawatt hours (GWh), which is sufficient to power around 13,000 EVs. Initially, the facility will focus on producing prototype batteries, separate from those supplied by existing battery manufacturers.
Hyundai’s move to produce its own batteries aligns with a broader industry trend of internalizing battery technology, which allows automakers to tailor batteries for specific EV models, improving both performance and cost-efficiency. Industry sources indicate that the company is likely to develop ternary batteries such as nickel-cobalt-manganese (NCM) batteries, although it may outsource manufacturing to established battery cell makers like SK On. This approach would allow Hyundai to install custom-designed batteries in its EV models, boosting both range and performance.
Reducing Dependency on External Suppliers
Despite its push to develop in-house battery technology, Hyundai will continue working with existing battery suppliers, including SK On and LG Energy Solution, which provide pouch-type NCM and NCMA batteries for Hyundai’s higher-end EVs and lithium iron phosphate (LFP) batteries for more budget-friendly models like the Hyundai Kona and Kia Niro.
By pursuing internal battery production, Hyundai is following in the footsteps of major competitors like Tesla and BYD, which have successfully reduced EV manufacturing costs by producing their own batteries. Tesla, for instance, has developed 46-pi cylindrical batteries, while BYD equips 80-90% of its EVs with in-house battery technology. General Motors and Toyota are also making moves to internalize battery production.
Challenges Ahead and Future Prospects
Hyundai’s ambitious plans come at a time when the global EV market is facing both opportunities and challenges. While demand for EVs continues to grow, supply chain disruptions and rising material costs have prompted Hyundai to revise its 2030 vehicle sales targets. However, the company’s investments in battery technology and partnerships with key industry players suggest a long-term commitment to remaining competitive in the global EV market.
With the integration of advanced LFP battery technologies and the establishment of in-house battery production, Hyundai Motor and Kia Corporation are positioning themselves to take advantage of future growth opportunities while reducing their dependency on external suppliers. The project also highlights Korea’s strategic efforts to reduce reliance on Chinese imports for battery materials, an issue of growing importance in the global EV race.
