Hyundai Motors strikes deal with SK On for EV battery supply in North America
Hyundai Motor Group has recently signed a MOU with battery manufacturer SK On Co. to secure a supply of EV batteries in North America. With this move, the automaker aims to bolster its EV presence in the North American market in the coming years.
As per the agreement, both parties have vowed to secure SK On batteries to the Hyundai's plants in the U.S. after 2025 for the EV production. Further details on the cooperation and volume will be revealed at a later stage, the companies have said.
"Through the EV battery MOU, we will be able to further accelerate our efforts to secure EV leadership in the North American market," said Executive Vice President Kim. "We expect the stable supply of EV batteries from SK On will also enable us to contribute to emissions reduction and meet climate goals in the market."
"We expect the cooperation between SK On and Hyundai Motor Group to create a big synergy," SK On Chief Administrative Officer Choi Young-chan said. "Both sides can hold a solid position in the process of electrification in the North American auto market."
Hyundai Motor Group is accelerating electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030. To realize this goal, the group is planning to establish a global EV production network that will ensure a stable supply of EVs around the globe.
It is reported that that the companies may build a dedicated battery plant at Bryan County in the US state of Georgia, with an annual capacity of 20 GWh to support the production of 300,000 EVs in the region, with operations expected to start by 2026.
SK On is already operating two battery plants in Georgia, and is said to have secured land for two more units. The company is spearheading the production of pouch-type high nickel batteries that are used in Hyundai's IONIQ 5 electric crossover and IONIQ 6 electric sedans.
The group's upcoming IONIQ 7 and Kia's EV 9 SUV models that are to be manufactured in Hyundai's Alabama plant are expected to feature SK On pouch-type batteries.