Hyundai Motor Group today signed a memorandum of understanding with SK On Co., a leading EV battery manufacturer, to secure a supply of EV batteries in North America.
The signing of the MOU took place at SK Group Headquarters in Korea, participated by Heung-soo Kim, Executive Vice President and Head of Corporate Future Growth Planning Division & EV Division of Hyundai Motor Group and Young-chan Choi, Chief Administrative Officer of SK On.
Under the MOU, both parties will cooperate to provide SK On batteries to the Group’s plants in the U.S. after 2025 for the EV production. Further details on the cooperation will be revealed at a later stage.
Hyundai Motor Group is promoting a plan to produce various EV models in the United States through Hyundai Motor Alabama Plant (HMMA), Kia Georgia Plant (KaGA), and Hyundai Motor Group New Plant (HMGMA). Meanwhile, SK On is currently operating its own EV battery factory in Georgia, the U.S.
The MOU is also expected to further strengthen the two companies’ partnership. SK On’s batteries are already installed in the Hyundai IONIQ 5, IONIQ 6, and Kia EV6.
In addition, the cooperation between Hyundai Motor and SK On is anticipated to have a great effect in responding to the US Inflation Reduction Act (IRA). This means a series of IRA restrictions that lead to production/processing of key minerals for electric vehicle batteries and assembly of electric vehicles can be met through cooperation between the two companies.
“Through the EV battery MOU, we will be able to further accelerate our efforts to secure EV leadership in the North American market,” said Executive Vice President Kim. “We expect the stable supply of EV batteries from SK On will also enable us to contribute to emissions reduction and meet climate goals in the market.”
“We expect the cooperation between SK On and Hyundai Motor Group to create a big synergy,” SK On Chief Administrative Officer Choi Young-chan said. “Both sides can hold a solid position in the process of electrification in the North American auto market.”
Hyundai Motor Group is accelerating electrification efforts with the global target to sell 3.23 million full electric vehicles annually by 2030. To realize this goal, the Group plans to establish a global EV production network that will ensure a stable supply of EVs around the globe.