South Korea’s Hyundai Motor Group reported on Wednesday that it would launch an electric vehicle-only platform early next year that will use its own battery technology to minimize manufacturing time and costs.
The strategy highlights the efforts of the world’s No.5 auto group to become a major player in the global EV market, as car manufacturers around the world are spending billions of dollars to boost battery technology, which holds EV prices high compared to combustion engine models.
Market leader Tesla said in September that it aims to reduce the cost of its EV batteries by half and put more output of the main auto part in-house to lower EV prices to $25,000 each.
Hyundai expects its dedicated Electric Global Modular Platform (E-GMP) to allow it to use its own battery module technology across different EV models and to reduce the number of components by 60 per cent.
“E-GMP will be very effective in expanding the leadership position of the EV Group as it will allow the company to expand its EV line-up over a relatively short period of time through modularization and standardization,” he said in a statement.
An electric vehicle based on the E-GMP can give a driving range of 500 km (310 miles) or more on a single charge, an increase of at least 23 per cent from the Kona EV, the longest driving range in the Hyundai EV range.
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However, Hyundai R&D Chief Albert Biermann said that the company does not see the need to develop its own battery cells and is happy to collaborate with its suppliers, including SK Innovation Co Ltd and LG Chem Ltd’s LG Energy Solution.