Hyundai, SK Innovation join forces to create EV battery industry ecosystem

New York — Carmaker Hyundai Motor Group and battery manufacturer SK Innovation have decided to join forces to develop a sustainable ecosystem for electric vehicle (EV) batteries, which will focus on battery sales solutions, management, reuse and recycling.

Hyundai said Sept. 8 that the aim of the partnership was to create a battery value chain and strengthen eco-friendliness in business operations covering the entire lifecycle of EV batteries.

SK Innovation was previously chosen as Hyundai's first-tier battery supplier for its Electric Global Modular Platform (E-GMP) that will be introduced in 2021.

"Through this partnership, the two parties aim to strengthen the stability of the battery supply chain and create a virtuous cycle of resources from recycling to production; reduce carbon emissions; encourage optimal design that connects EVs and battery reuse, and create synergies by maximizing added value through the optimal design of batteries," Hyundai said.

The plan is for a virtuous cycle of battery usage, or Battery as a Service (BaaS), to include lease or rental service, which would allow the collaboration to catalyze the spread of diverse cooperation systems between mobility and battery companies, not only focus on battery supply.

Hyundai said the collaboration would be looking for solutions that could maximize value and eco-friendliness of EV batteries, including reusing batteries that were no longer usable in vehicles in other applications, such as energy storage systems (ESS), and battery recycling to economically extract valuable metals, including lithium, nickel and cobalt.

"These innovations are expected to enhance the value and competitiveness of the battery recycling industry, which will buttress the future EV era," the carmaker said.

To start with, both companies will be focusing on collecting and verifying the battery pack of Kia Motors' Niro EV model.

Hyundai Motor Group president and chief innovation officer Youngcho Chi said the cooperation was the critical first step in maximizing synergies between mobility and battery companies.

"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," he said.

SK Innovation's Battery Business president Dongseob Jee said both companies would "create a seamless collaboration system to explore new business opportunities across the whole battery value chain."

In addition to the SK Innovation collaboration, Hyundai is exploring new opportunities and improving technologies by also collaborating with other companies specializing in EV battery reuse, including Korea Hydro & Nuclear Power Co., Wärtsilä, OCI, and Hanwha Solutions.