Hyundai Developing LFP Batteries For Affordable EVs

According to The Korea Herald, Hyundai is working on a new generation of lithium iron phosphate (LFP) batteries for affordable EVs.

The report stated that the automaker is embarking on a two-year joint venture with battery makers based in its home country of South Korea, with the goal of completing development work on LFP batteries in 2024 and using the batteries in production EVs beginning in 2025.

Hyundai currently uses LFP batteries from Chinese supplier CATL in some Kona Electric and Kia Ray EV models.

Although it is widely known that China dominates the battery material supply chain, other nations are making concerted efforts to lessen their reliance on China. The Inflation Reduction Act was proposed in the US last year with the intention of severing ties with China's supply chain.

South Korea, likewise, is making efforts in this direction, particularly in the development of lithium iron phosphate (LFP) batteries.
Hyundai wants to reach an energy density of about 300 watts per kilogramme and increase the battery cell's capacity to more than 60 amperes. Hyundai hopes to achieve this by raising the LFP batteries' voltage and capacity to levels that are on par with those of more costly nickel, manganese, and cobalt (NCM) batteries.

Hyundai will be able to provide EVs at a lower cost by using LFP batteries, which is important in a global market where EV prices have decreased dramatically as a result of the EV price wars started by Tesla. 

The automaker has formed a joint venture with LG in the United States to produce batteries for EVs manufactured in the United States. The joint-venture battery plant will be in Georgia, supplying batteries for Georgia EV production, which is set to begin in 2024 at a $7.6 billion "Metaplant" near Savannah.

Due to changes in EV tax credit rules and other U.S. EV policy that prioritises local assembly of vehicles and battery packs, Hyundai has made efforts to shorten the timeline.