Hyundai Motor Group is developing a new battery strategy aimed at reducing electric-vehicle costs while preserving driving range and performance as Chinese automakers intensify price competition.
The company plans to introduce mid-nickel NCM batteries in mass-produced vehicles during the first half of 2027. NCM batteries use nickel, cobalt and manganese in their cathodes. Hyundai’s mid-nickel design reduces the amount of expensive nickel compared with high-nickel cells, while offering about 30% more energy capacity than lithium iron phosphate (LFP) batteries in the same volume.
Hyundai says the technology could reduce battery costs by roughly 30%. The savings could allow the company to lower vehicle prices, increase driving range, invest in other features or improve profit margins.
The company plans to use different battery chemistries for different vehicle categories. High-nickel NCM batteries would be used in models requiring high energy density and fast charging. Mid-nickel NCM would be aimed at competitively priced mainstream EVs, while LFP batteries would be reserved for ultra-low-cost models.
Hyundai says its mid-nickel batteries can preserve more energy in a given space than LFP cells, an advantage for compact and midsize vehicles where battery packaging competes with passenger and cargo space.
The automaker is also developing technology to improve battery safety. Its Thermal Runaway Protection system is designed to prevent heat from spreading to neighboring cells when a single cell malfunctions. Hyundai says it conducted more than 200 repeated safety tests using the NCM prismatic and pouch batteries used in its vehicles. The technology is scheduled to debut in the Genesis GV90 before being expanded across additional models and vehicle classes.
Hyundai’s battery development extends beyond passenger EVs. The company is preparing batteries for robotics and urban air mobility, where size, weight, power output and reliability requirements differ from those of conventional vehicles. Planned applications include the Atlas humanoid robot, a personal air vehicle being developed with Uber, and an unmanned firefighting robot developed with South Korea’s National Fire Agency.
The company is separately developing a high-performance cell for extended-range electric vehicles. Hyundai says the cell could more than double output and reduce charging time by 40% compared with its existing technology while maintaining energy density similar to previous high-nickel batteries.
The first extended-range application is expected to be a Santa Fe model planned for the first half of 2027, with a targeted total driving range of more than 600 miles. Genesis is also developing an extended-range model with a target exceeding 640 miles. Actual customer charging times and range will depend on the vehicle’s battery pack, software, temperature and charging infrastructure.
