In a strategic move to bolster their position in the rapidly evolving electric vehicle (EV) market, Hyundai and Kia have embarked on an innovative four-year project to develop lithium iron phosphate (LFP) battery technology. 

According to Hyundai, the project brings together Hyundai Steel and EcoPro BM, a prominent player in the cathode material market. Their collective goal is to pioneer a direct synthesis process for LFP battery cathode materials, bypassing the traditional precursor stage.

“To meet future demand in the EV market, rapid technological development and effective battery supply chain establishment are essential,” stated Soonjoon Jung, Vice President and Head of the Electrification and Driving Materials Development Group at Hyundai Motor and Kia.

The cornerstone of this initiative is a novel approach to cathode material synthesis. By simultaneously adding phosphate, iron powder, and lithium, the process eliminates the need for precursor materials like phosphate and iron sulfate. This direct synthesis method not only reduces hazardous emissions during manufacturing but also promises to lower production costs significantly.

Hyundai Steel’s role in developing high-purity fine iron powder processing technology using domestically recycled iron is crucial to the project’s success. EcoPro BM will leverage this technology to create directly synthesized LFP battery cathode material, ensuring impurity-free and uniformly sized raw materials essential for efficient production.

The ultimate goal of this collaboration is to develop LFP cathode material that enables fast charging capabilities and high-level performance, even at low temperatures. These advancements are expected to dramatically improve the overall performance, safety, and cost-effectiveness of EV batteries.

Notably, this project aligns with Hyundai and Kia’s broader strategy to enhance battery capabilities and make EVs more accessible to a wider range of buyers. The automakers have already introduced more affordable EV models, such as the Kia EV3 and Hyundai Casper Electric (known as Inster EV in overseas markets), with prices starting as low as $22,800 in Korea.

The Korean Ministry of Trade, Industry and Energy is backing this initiative as part of its ‘LFP Battery Technology Development’ program. This support undelrines the project’s potential to reduce import reliance and boost South Korea’s technological competitiveness in the global EV market.

As China currently dominates the global EV battery market, with CATL and BYD accounting for 43.5% of worldwide sales in Q2 2024 according to SNE Research, this project represents a significant step for South Korean automakers to strengthen their position and offer competitive alternatives.

Read More: BYD and CATL Set to Introduce EV Batteries Capable of Full Charge in 10 Minutes

By fostering innovation across these industries, the project aims to accelerate advancements in LFP battery technology and solidify South Korea’s role in shaping the future of electric mobility.

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