Hyundai Motor Group and SK Innovation Co. will work together to develop a more sustainable ecosystem for electric vehicle (EV) batteries aimed at supporting the future mobility industry.
The two parties announced today their plan to cooperate in diverse business areas related to the EV battery industry, including battery sales solutions, battery management service, and battery reuse and recycling, Hyundai said.
The collaboration stems from the companies’ shared need to create a battery value chain and strengthen eco-friendliness in business operations covering the entire lifecycle of EV batteries, according to the companies. The Hyundai-SK cooperation aims for a virtuous cycle of battery usage known as the Battery as a Service (BaaS), which includes lease or rental service. As a result, the cooperation is expected to catalyse the spread of diverse cooperation systems between mobility and battery companies.
Through this partnership, the two parties aim to strengthen the stability of the battery supply chain and create a virtuous cycle of resources from recycling to production; reduce carbon emissions; encourage optimal design that connects EVs and battery reuse, and create synergies by maximizing added value through the optimal design of batteries.
To enable cooperation, both sides are focusing on the initial process of collecting and verifying the battery pack of Kia Motors’ Niro EV model.
In particular, the two companies will seek solutions that can maximize value and eco-friendliness of EV batteries, including reuse of batteries that are no longer useable in vehicles in diverse applications such as the Energy Storage Systems (ESS); and battery recycling that extracts economically valuable metals such as lithium, nickel and cobalt.
Additionally, Hyundai Motor Group and SK Innovation plan to synergize their respective affiliates’ business infrastructures and capabilities spanning diverse industries, thereby strengthening their battery competitiveness and expanding the growth of related sectors.