Hyundai Motor Group and SK Innovation have agreed to work together to develop a sustainable ecosystem for electric vehicle batteries. The cooperation of the South Korean companies will include various business areas not directly related to cell manufacturing.
The cooperation will include battery distribution, battery management services, and reuse and recycling of power storage devices. In this way, the partners intend to strengthen the stability of the battery supply chain and maximise the added value “by creating a virtuous cycle of resources,” as Hyundai writes in a press release. Or in short: The optimised use of the battery over its useful life should greatly improve the environmental balance.
The planned cooperation in battery distribution will also include leasing and rental offers, thus enabling ‘Battery as a Service’ offers to end customers. However, the batteries themselves must also be adapted for this purpose. The aim is to find an optimal design that will allow the batteries to be used in electric cars while also meeting the requirements for second-life applications and recycling.
First, the two partners want to analyse the battery of a Kia e-Niro in detail as an example and develop the processes based on the data obtained. The resulting innovations should do nothing less than “enhance the value and competitiveness of the battery recycling industry, which will buttress the future EV era” says Hyundai.
The cooperation is also expected to have an impact on business units that initially have nothing to do with electromobility. To this end, the two groups have announced that they will analyse the business structures of their respective subsidiaries in different sectors and leverage synergies. One of the aims is to expand growth in “related sectors”.
“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,” said Youngcho Chi, President and Chief Innovation Officer of Hyundai Motor Group. Dongseob Jee, President of SK Innovation’s battery business, added: “Both companies will create a seamless collaboration system to explore new business opportunities across the whole battery value chain”.
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