South Korean companies Hyundai Motor Group and SK On have signed a memorandum of understanding on the supply of EV batteries in North America, Kallanish reports.
Under the initial agreement, SK On will provide the Hyundai, Kia, and Genesis brands with batteries for their EV models in the US after 2025. The deal was signed in South Korea and followed rumours they would be jointly building a new battery gigafactory in the US.
“Further details on the cooperation will be revealed at a later stage,” Hyundai Motor Group said in a statement on Tuesday. The carmaker is accelerating its electrification efforts and intends to sell 3.23 million BEVs per year globally by 2030.
“Through the EV battery MOU, we will be able to further accelerate our efforts to secure EV leadership in the US market,” comments the carmaker’s executive vice-president Heung-soo 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 US market.”
SK On chief administrative officer Choi Young-chan expects the cooperation to create “a big synergy,” noting both sides can hold a solid position in the electrification of the North American auto market.
SK On currently operates an EV battery factory in Georgia, while Hyundai Motor Group plans to produce several EV models through its Hyundai Motor Alabama Plant (HMMA), Kia Georgia Plant (KaGA), and Hyundai Motor Group New Plant (HMGMA). The Hyundai IONIQ 5, IONIQ 6, and Kia EV6 all feature SK On batteries.
The battery manufacturer adds that the cooperation will meet a series of IRA requirements. These efforts include securing lithium from countries that have signed free trade agreements with the US, including Australia and Chile, it notes.
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