Hyundai Motor Group signed a memorandum of understanding (MOU) with SK On to secure a supply of EV batteries in North America. Under the MOU, both parties will cooperate to provide SK On batteries to the Group’s plants in the US after 2025 for the EV production.
Further details on the cooperation will be revealed at a later stage.
Hyundai Motor Group plans to produce various EV models in the United States through Hyundai Motor Alabama Plant (HMMA), Kia Georgia Plant (KaGA), and Hyundai Motor Group New Plant (HMGMA). Meanwhile, SK On is currently operating its own EV battery factory in Georgia.
The MOU is also expected to further strengthen the two companies’ partnership. SK On’s batteries are already installed in the Hyundai IONIQ 5, IONIQ 6, and Kia EV6.
To secure lithium for making EV battery cells, SK On recently signed purchase contracts with resource development companies in countries that have signed FTAs with the US including Australia and Chile, taking quick steps to meet US “Inflation Reduction Act” (IRA) requirements.
Through the EV battery MOU, we will be able to further accelerate our efforts to secure EV leadership in the North American market. 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 market.—Heung-soo Kim, Executive Vice President and Head of Corporate Future Growth Planning Division & EV Division of Hyundai Motor Group
Hyundai Motor Group is accelerating electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030. To realize this goal, the Group plans to establish a global EV production network that will ensure a stable supply of EVs around the globe.