Hyundai Motor joins battery race with new research center
Auto giant takes cue from China’s BYD, aiming for cost efficiency, upper hand in talks with battery suppliers
Hyundai Motor Group is set to begin construction of its first dedicated battery research center in Anseong, Gyeonggi Province, as early as March, marking a significant step in developing its own electric vehicle batteries.
According to industry sources on Monday, the auto giant has recently appointed a safety inspection agency for its Anseong facility construction project, code-named “Mobility Alpha Line Anseong Center.” With this final step before breaking ground, construction is expected to begin as early as March, with completion projected for 2027.
The facility will be Hyundai Motor’s first research base exclusively focused on EV batteries, potentially positioning the company alongside China’s BYD, which manufactures its own batteries for its vehicle brands. Hyundai Motor already operates a battery research center in collaboration with Seoul National University, but the new facility marks its first independent R&D hub for battery development.
The Anseong center is expected to become Hyundai’s fourth major research hub, following those in Namyang, Mabuk and Uiwang. The facility will reportedly develop a range of battery technologies, including cost-effective lithium iron phosphate batteries and high-performance nickel, cobalt and manganese batteries.
Hyundai Motor has committed hundreds of billions of won to the project and is considering additional investments to expand the facility’s capacity beyond a pilot line to small-scale production, according to sources.
An industry source on condition of anonymity, said :
Hyundai Motor’s battery production is likely at the fifth stage of the nine ‘technology readiness levels’ — prototype development,
“The decision to proceed with mass production will depend on a careful assessment of costs and profitability. Based on this analysis, the company will determine whether to outsource production to battery makers or establish its own manufacturing plant.”
If Hyundai Motor contracts with battery makers, it may pursue a “fabless” business model, similar to Apple and Foxconn, where a third-party manufacturer handles production with limited access to proprietary technology, the source added.
A Hyundai Motor Group official commented,
The specifics regarding the battery research facility in Anseong, including its name and construction timeline, have not been finalized.
Industry experts view Hyundai’s investment in battery R&D as a strategic move to enhance cost efficiency and reduce reliance on external battery suppliers.
Kim Pil-su, a car engineering professor at Daelim University, said :
Although mass production may take time, securing proprietary battery chemistry is crucial. Hyundai can leverage this expertise as a bargaining tool when negotiating supply deals with LG Energy Solution and SK On,
“In the long run, Hyundai will aim to lower the battery’s share of total EV production costs from 40 percent to below 30 percent, similar to BYD.”
This is not Hyundai’s first foray into battery manufacturing. Its Uiwang center developed the hybrid car battery for the fifth-generation Santa Fe Hybrid, launched in August 2023, which was mass-produced by SK On.
Hyundai is also reportedly developing all-solid-state batteries, known for their high safety and energy density. The Uiwang facility is set to open a next-generation battery research wing with a pilot line for these advanced batteries. The company is expected to test and optimize materials for cathodes, anodes and solid electrolytes to enhance battery performance.
Last year, Hyundai committed to securing next-generation battery technologies, including NCM and all-solid-state batteries, by 2030. The company plans to begin pilot production of EVs equipped with all-solid-state batteries by 2025, with mass production targeted for 2027.
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Hyundai Motor joins battery race with new research center, source
