Like most car manufacturers, South Korean Hyundai is looking for a way to lower the price of its electric cars. To achieve this, the brand plans to manufacture its own LFP (lithium-iron-phosphate) batteries.
This summer, Hyundai had already given some clues about its long-term strategy. The South Korean group had notably announced an investment of 6.8 billion euros “ in the field of batteries “. Today, the brand confirms that a dedicated unit “ to the development of LFP batteries » has been created. The first electric models to benefit from it will leave the factories in 2025.
How to lower the price of electric cars?
Hyundai decided to adopt this strategy for several reasons. The first is obvious: lower the price of electric cars. LFP technology is less expensive and producing in-house allows costs to be monitored. But manufacturing your own batteries is also a way to gain independence, and therefore to control a large part of the supply chain. The Asian company is seeking in particular to reduce its dependence on China.
By working on cell chemistry, Hyundai also hopes to be able to advance the autonomy of its vehicles more quickly. The brand’s future models will have “ increased energy density and better efficiency at low temperatures “. The car manufacturer intends “ take advantage of the major changes currently taking place in the industry », to stand out from the game.
Hyundai plans to complete the development of its LFP batteries by 2024. According to Lee Ho-geun, professor of automotive engineering at Daeduk University in South Korea, “ if Hyundai starts manufacturing its own batteries, a model that has proven itself at the giant BYD, the brand will undoubtedly be able to increase production and reduce costs ».
Hyundai wants to copy Tesla to produce its electric cars
And the demand for “ affordable electric vehicles » is increasing in the main global automotive markets. The Chinese BYD is recording record growth with low-cost models like the Dolphin and the Atto 3. Many brands plan to release models around 20,000 euros. Even Tesla is getting in on the action with the future Model 2.
By producing its own batteries, Hyundai is giving itself the means to stay in the race and achieve its goal: to be one of the three largest electric car manufacturers by 2030.
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