Hyundai, LG to Team up to Produce Batteries for Electric Vehicles
20 January, 2020
Hyundai and LG will join hands to produce batteries for electric vehicles.
"Hyundai Motor and LG Chem are collaborating to build a battery plant [for electric vehicles], but specific details, including the size of the investment and location of the plant, have not yet been decided," an industry insider said on Sunday.
The companies are said to have established a 50-50 joint venture with the total investment running into the trillions of won (US$1=W1,159). A site in Dangjin, South Chungcheong Province owned by Hyundai Steel is being considered for the plant, but they are also considering the option of building it overseas.
Hyundai last month announced plans to invest W9.7 trillion in its electric car business by 2025 to become the world’s second-largest manufacturer of EVs.
Currently the carmaker uses EV batteries supplied by LG Chem and SK Innovation.
As Hyundai recently signed a deal with SK Innovation to buy batteries for 500,000 EVs, SK is likely to remain a supplier for the carmaker even after the joint venture is established.
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