Hyundai to reduce EV price and improve drive range with NCM batteries

Hyundai Motor Group is seeking new ways to improve the electric vehicle (EV) drive range for affordable models with new high-density NCM batteries.

The carmaker has signed a partnership with SQM, a lithium mining company from Chile. Both companies have signed a long-term agreement for lithium hydroxide supplies. Prior to SQM, Hyundai Motor Group signed two lithium suppliers from China including Ganfeng Lithium and Chengxin Lithium Group this year.

Lithium hydroxide is used in high-priced ternary batteries such as NCM (nickel-cobalt-manganese). These are considered rich in energy density and capable of enabling improved driving range on each charge for EVs compared to LFP (lithium iron phosphate) batteries.

Korean industry observers believe that this new battery material deal is in line with Hyundai’s effort to adopt high-capacity NCM batteries for better extended range in new EV models.

Hyundai has announced a sub-compact Casper EV with 315 kilometers of drive range featuring NCM battery. It is comparable to Kia’s Ray EV with 205 kilometers of range with an LFP battery.

Hyundai INSTER EV teaser (Image source – Hyundai)

Casper EV will be launched as “Inster” in Europe and debut at the Busan International Mobility Show this week. Kia unveiled EV3, a dedicated EV SUV with deliveries targeted for July this year. This EV will also use an NCM battery instead of an LFP.

Kia EV3 GT-Line (Image Source – Kia)

The top-of-the-line long-range EV3 trim comes with a high-capacity 81.4 kWh NCM battery with up to 501 kilometers of range on a single charge. Hyundai wants to localize the NCM battery production to lower the EV price.

Earlier this year, the carmaker started production at its Indonesia battery plant with LG Energy Solution. These new batteries will be used in the EV3 model. Song Ho-Sung, CEO and President of Kia suggests that the EV company will expand NCM battery use in the lineup.

It is expected that models with high drive ranges and reasonable prices could help the industry break away from sales barriers.

(source – Koreatimes)