According to Hyundai, the partnership would create an ecosystem that involves cooperation between the three companies. They would examine opportunities to various EV battery business areas, including sales, services, reuse, and recycling.
The collaboration came after Hyundai Motor vice chairman Chung Eui-sun and SK Group chairman Chey Tae-won held a meeting last July to discuss various businesses in the EV battery market. Hyundai said that the partnership would add high value throughout the life cycle of EV batteries.
In a press release, South Korea’s largest automaker said that the collaboration aims to serve as an opportunity to create more diverse ecosystems in the future of the mobility-battery industry. This would establish a strong EV battery value chain from production to recycling.
The partnership also aims to reduce carbon dioxide emissions and optimize the system that links EVs to batteries and reuse. Hyundai hopes to create a virtuous cycle of “battery-as-a-service.”
The carmaker and the EV battery maker would test various recycling methods using the expended batteries of Kia’s Niro EV. The collaboration would find ways to use the spent batteries for other purposes, such as an energy storage system (ESS).
To Add Value and Competitiveness in the EV Battery Market
Both sides expect the partnership to add value and competitiveness in the EV battery market, specifically the reuse and recycling sector. The companies would study ways of effectively extracting valuable metals such as nickel, cobalt, and lithium.
SK innovation would supply Hyundai’s Electric Global Modular Platform (E-GMP), which the carmaker aims to introduce in 2021.
“We expect our cooperation to play an immensely positive role in strengthening Hyundai-Kia’s competitiveness in clean mobility as well as expanding the supply of eco-friendly EVs.”
– Chi Young-cho, president and chief innovation officer of Hyundai Motor Group
Chi added that the collaboration with SK Innovation marks a critical step in maximizing synergies between mobility and battery companies.
“Both companies will create a seamless collaboration system to explore new business opportunities across the whole battery value chain.”
-Jee Dong-seob, president of SK Innovation’s battery business