Hyundai Motor reportedly considers using batteries of China’s CATL for all its models
Hyundai Motor had recently considered using batteries made by Contemporary Amperex Technology Co Ltd (CATL) in all of its models, South Korean electronics industry media TheElec reported, citing people familiar with the matter.
The two sides had discussed replacing lead-acid batteries used in gasoline and electric vehicles with lithium-ion batteries, the sources said.
But they were unable to reach an agreement due to disagreements over unit prices, even though they even agreed on the size and specifications of the lithium iron phosphate (LFP) batteries to be used.
The report said talks between Hyundai and CATL could continue because lead-acid batteries are bad for the environment and the South Korean auto giant may eventually have to replace them.
Hyundai chose CATL as one of its electric vehicle suppliers in February of last year, allowing the Chinese battery giant provide batteries for two of the three models it plans to launch in 2023. SK Innovation supplying the remaining model.
In June, South Korean automaker Kia announced it had selected CATL batteries for its electric Niro crossover SUV, marking the first time the Hyundai subsidiary has used non-South Korean EV batteries for domestic sales.
Headquartered in Fujian, southern China, CATL is the world’s largest battery maker with customers ranging from Tesla to Volkswagen. Industry tracker SNE Research says the company has a more than 35% share of the booming global electric vehicle battery market.