Summary
- EV market is still growing, with Hyundai and Kia offering a range of EVs
- Goldman Sachs predicts a 50% reduction in EV battery costs by 2026
- Hyundai aims to develop high-capacity LFP batteries by 2025
- Hyundai working with partners to challenge Chinese dominance in LFP battery market
- Hyundai’s battery strategy focuses on enhancing battery development capabilities and reducing costs.
Article
The EV revolution is still growing despite a recent slowdown in sales, with companies like Hyundai and Kia continuing to develop and offer new electric vehicles. Goldman Sachs predicts that the cost of EV batteries will be cut in half within two years, potentially reinvigorating the market. The firm attributes this cost reduction to advancements in battery technology and a drop in lithium prices.
Hyundai Motor Group recently announced its goal to develop a lithium iron phosphate (LFP) battery with an energy density of 300 Wh/kg by the end of 2025, surpassing current Chinese-made LFP batteries. This move aims to advance electric vehicle technology and overcome market challenges, particularly in the mid- to low-cost small EV segment.
The company is collaborating with domestic battery partners to develop ultra-high capacity LFP batteries for its electric vehicles, challenging the dominance of Chinese manufacturers in LFP battery supply. Hyundai’s goal is to localize the production of LFP battery materials and reduce reliance on foreign sources, showcasing its commitment to innovation and competitiveness in the EV industry.
Hyundai Motor Group’s battery strategy, named “Hyundai Way,” plans to increase the capacity of in-house LFP and NCM batteries by over 20% by 2030, emphasizing its dedication to battery development and securing a leading position in the EV market. By focusing on material localization and collaborating with domestic partners, Hyundai aims to provide advanced battery solutions for entry-level electric vehicles and minimize the dominance of Chinese manufacturers in the LFP battery market.
Goldman Sachs highlights two main factors contributing to reduced battery costs: technological innovation leading to higher energy density and lower cost, and a continued decrease in lithium and cobalt prices, which make up a significant portion of battery costs. The firm anticipates that lower commodity costs will account for about 40% of the decline in battery prices between 2023 and 2030, driving further affordability for EVs.
Overall, the EV market continues to see advancements in battery technology and cost reductions, paving the way for more affordable and accessible electric vehicles in the future. Hyundai’s proactive approach in developing high-capacity LFP batteries and collaborating with domestic partners positions it as a key player in the evolving EV landscape, showcasing a commitment to innovation and competitiveness in the industry.
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