SK On,
Hyundai Motor Group sign MOU on EV battery supply in N. America
- SK On and Hyundai Motor Group join hands to expand presence in N.
American EV market
- Deal targets to supply EV
batteries to Hyundai Motor Group factories in the U.S. after 2025
SEOUL, Nov. 29,
2022 ㅡㅡ SK On, a leading electric vehicle (EV) battery manufacturer, and
Hyundai Motor Group (HMG), smart and sustainable mobility solutions provider,
announced today that they have signed a memorandum of understanding (MOU) to
cooperate on supply of EV batteries in North America. SK On and HMG expects to
create synergy and expand market presence in North American EV market.
SK On and HMG
gathered at SK Group headquarters in Jongno, Seoul, where SK On Chief
Administrative Officer Choi Young-chan and Hyundai Motor Executive Vice
President and Head of Corporate Future Growth Planning Division & EV
Division Kim Heung-soo inked the MOU.
Under the
MOU, the two sides agreed to join forces to supply SK On’s batteries to HMG’s EV assembly plants in
the U.S. after 2025. SK On and HMG will continue to discuss further details,
such as the form of partnership and supply volume, in the near future.
HMG plans to produce
various kinds of EV models at its U.S. factories ㅡㅡ Hyundai Motor Manufacturing
Alabama (HMMA), Kia Georgia (KaGA) and Hyundai Motor Group Metaplant America
(HMGMA).
SK On,
currently the world’s fifth largest EV battery maker, has
two EV battery manufacturing plants in Georgia.
The MOU is expected to
enhance the existing partnership between SK On and HMG. The IONIQ 5 and IONIQ
6, Hyundai’s two popular EV models, and EV6, Kia’s electric SUV, are currently equipped with SK On batteries.
SK On and HMG
are also expected to respond to IRA through the latest partnership.
The IRA rules on EV tax credits require final assembly of EVs to
occur within North America. It also states that a certain percentage of
critical minerals extracted or processed in the U.S. or in the countries whose
FTA with the U.S. is in effect should be used in EV batteries in order to qualify
for the credits.
SK On has
been moving swiftly to cope with the IRA rules. The battery making unit of SK
Group recently secured lithium deals with firms in Australia and Chile that
signed the FTA with the U.S. This means that the latest MOU can help both sides
to meet the IRA requirements in EV production starting from mineral extraction,
processing and to vehicle assembly.
“We expect the cooperation between SK On and Hyundai Motor Group to
create a big synergy,” said SK On Chief Administrative
Officer Choi. “With the latest MOU, both sides can hold
a solid position in the process of electrification in the North American auto
market.”
“Through the EV battery MOU, we will be able to further accelerate U.S.
market EV growth,” said Hyundai Motor Executive Vice President Kim. “We expect
the stable supply of EV batteries from SK on will enable us to focus on
securing EV leadership in the U.S. market.”
<END>
|
