Summary
- Electric vehicle sales faced challenges last year, but automakers like Hyundai are pushing forward with new technologies
- The cost of EV batteries has been decreasing rapidly, but not enough to meet the target goal of $100 per kilowatt-hour
- Automakers are exploring new battery technologies like lithium-iron-phosphate (LFP) to lower costs and improve performance
- Hyundai has partnered with Kia to develop a new LFP battery project with a four-year timeline
- The goal is to create high-performing, cost-effective batteries that will further drive the growth of the EV market in the future
Article
The electric vehicle (EV) market faced challenges last year, leading some to question the future of zero-emission mobility. However, automakers like Hyundai are pushing forward with new initiatives to bring affordable EVs to the market. Hyundai has partnered with Kia to develop a lithium-iron-phosphate (LFP) EV battery project, aiming to lower costs and improve accessibility to electric vehicles.
Despite significant cost reductions in EV batteries over the past 15 years, the price of batteries still falls short of the target set by the US Department of Energy. Automakers are now exploring alternative battery formulas, such as LFP, to further reduce costs. The 2021 Bipartisan Infrastructure Law includes a $2.8 billion allocation for EV battery projects, signaling a strong push towards making electric vehicles more affordable.
Concerns over slow discharge and low energy density have hindered the adoption of LFP technology in 100% electric vehicles. However, advancements have been made to address these challenges, with Ford announcing plans to produce LFP EV batteries by 2026 at its BlueOval Battery Park in Michigan. President Joe Biden’s manufacturing agenda has also incentivized automakers to invest in domestic supply chains.
Hyundai’s partnership with Kia and other companies aims to eliminate certain steps in EV battery manufacturing to reduce costs. The new venture plans to combine the cathode materials in one process, making production more efficient and environmentally friendly. The four-year timeline for this project underscores the complexity of developing high-quality LFP batteries for electric vehicles.
Hyundai is banking on the success of its LFP battery project to make electric vehicles more accessible and competitive in the market. The goal is to create a high-performing battery that can charge and discharge quickly at low temperatures, addressing performance concerns associated with LFP technology. The company is also focusing on keeping costs low to ensure continued growth in EV sales.
As Hyundai unveils new models like the IONIQ 5 EV and the IONIQ 5 XRT, manufactured in the USA, the company is positioning itself to take advantage of federal tax credits and incentives for EV purchases. The push towards onshoring production aligns with the Biden administration’s goals and highlights Hyundai’s commitment to expanding its presence in the electric vehicle market. Overall, the collaboration between Hyundai, Kia, and other partners reflects the industry’s determination to innovate and drive the transition towards sustainable transportation.
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