Hyundai Group and SK Innovation to collaborate on battery ecosystem

Hyundai Motor Group and Korean energy and chemical firm SK Innovation have agreed to cooperate in the development of a sustainable ecosystem for Electric Vehicle (EV) batteries.

The two parties have announced 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.

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. To enable cooperation, both sides are focusing on the initial process of collecting and verifying the battery pack of Kia Motors' Niro Electric model.

Unlike existing cooperation schemes between mobility companies and battery companies that tended to centre on battery supply, the Hyundai-SK cooperation aims for a virtuous cycle of battery usage known as the 'Battery as a Service', which includes lease or rental options.

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, as well as to reduce carbon emissions, encourage optimal designs that connect EVs and battery reuse, and create synergies by maximising added value through the optimal design of batteries.

In particular, the two companies will seek solutions that can maximise value and eco-friendliness of EV batteries, including the reuse of batteries that are no longer useable in vehicles in diverse applications, such as Energy Storage Systems and battery recycling that extracts economically valuable metals such as lithium, nickel and cobalt.

These innovations are expected to enhance the value and competitiveness of both firms in the battery recycling industry.