Hyundai Motor was reviewing a plan to procure more batteries made in China, TheElec has learned.
The company may expand the number of batteries it buys from CATL. Sources said it is highly likely that the South Korean auto giant will more than double the amount it procures from the battery maker.
CATL is expected to supply enough batteries to power over 70,000 units of electric vehicles to Hyundai Motor.
The batteries in question are nickel-based ones. Hyundai Motor was not considering buying more lithium iron phosphate batteries, the sources said.
It will buy batteries with lengths of 300mm or below and is aimed at EVS not made through E-GMP platform.
The batteries will be instead for models that are made with Hyundai Motor’s legacy platforms.
The move is being considered as Hyundai Motor and sister brand Kia are building their new automobile factory dedicated to EVs in South Korea.
The factory is planning to manufacture some 350,000 units this year __ the auto brands are planning to increase this to 1.44 million units by 2030.
Enough supply of batteries is needed for this ambitious goal as nickel and lithium prices continue to spike.
CATL is offering its batteries at a lower price point than its rivals in South Korea such as LG Energy Solution and SK On, the sources said.
Meanwhile, Hyundai Mobis, the parts-making subsidiary of Hyundai Motor, is collaborating with the Chinese battery maker in cell-to-pack technology.
The pair had signed licensing agreement for the technology that removes the modules in packs and has cells put in directly to packs.
CTP only supports batteries made by CATL and Hyudani Mobis’ agreement indicates that Hyundai Motor had always planned to buy more batteries from the Chinese battery maker.