Hyundai to battle China’s battery dominance with 300Wh/kg LFP-powered EV cars

Hyundai Motor is taking significant steps to solidify its position in the electric vehicle (EV) market. The company is focusing on developing ultra-high-capacity lithium iron phosphate (LFP) batteries for its upcoming low-cost Hyundai and Kia electric vehicles.

With a goal to achieve an energy density of around 300 Wh/kg, Hyundai aims to outpace current leaders in the industry, such as China’s CATL and BYD, who are currently at around 200 Wh/kg.

This bold move is a part of Hyundai’s larger strategy to become a dominant player in the EV market.

Pioneering the shift to electric vehicles

Hyundai has already established itself as a frontrunner in the transition to electric vehicles. Models like the IONIQ 5 and IONIQ 6 are recognized for their efficiency and affordability, making them popular choices among consumers.

However, the automaker is not stopping there. It has ambitious plans to develop advanced battery technology and other innovations to ensure a leading position in the future of the auto industry.

According to a report by Electrek , a representative from Hyundai confirmed last fall that the company is collaborating with local partners, including LG Energy Solution, Samsung SDI, and SK On, to develop these cutting-edge LFP batteries .

The primary focus is to maximize cell capacity while aiming for a significant increase in energy density. If Hyundai achieves its target of 300 Wh/kg by 2025, it would set a new standard in the industry and outshine its competitors.

Reducing dependence on China

China has dominated the global battery market, with CATL and BYD collectively controlling over 50% of the share as of August 2024. Hyundai recognizes the need to reduce its reliance on Chinese battery manufacturers. The company currently uses CATL batteries in models like the Kona EV and the Kia Ray.

However, with the recent implementation of tariffs on EV imports from China in the U.S. and EU, Hyundai is taking proactive steps to establish its own battery production capabilities.

In June, Hyundai Motor CEO Chang Jae-hoon announced a substantial $7.3 billion (9.5 trillion won) investment over the next decade to advance EV battery technology and development.

Chang stated, “Hyundai will work with battery makers and others to develop LFP, NCM, and all-solid-state batteries.” This investment highlights Hyundai’s commitment to diversifying its battery sources and enhancing its manufacturing capabilities.

Additionally, Hyundai and Kia have initiated a new project to develop LFP battery cathode material aimed specifically at producing lower-cost EVs. The automakers are collaborating with Hyundai Steel and ExoPro BM to create a precursor for LFP battery cathodes.

According to Hyundai, the innovative production method can improve efficiency while lowering costs for future EV models.

Affordable electric vehicles on the horizon

Hyundai and Kia are already making strides in offering lower-priced electric vehicles. The Capsper Electric from Hyundai starts at under $23,000 (31.5 million won) in Korea, and with available incentives, consumers can purchase it for as low as $15,000 (20 million won).

Kia’s upcoming EV3 model begins at around $30,000. These vehicles are part of Hyundai’s larger plan to make electric vehicles more accessible to a broader audience.

Hyundai’s focus on developing affordable, efficient electric vehicles reflects a growing trend in the auto industry toward sustainable transportation solutions.

With their new battery technology, Hyundai and Kia aim to offer next-generation electric vehicles that are not only cost-effective but also more efficient.