Hyundai EVs May Get Cheaper LFP Batteries

Automakers are looking for ways to make electric vehicles more affordable and to reduce how dependent they are on China for battery components. One of the major ways automakers can do this is to manufacture their own lithium iron phosphate (LFP) batteries. According to The Korea Herald, Hyundai is the latest automaker to be developing a new generation of LFP batteries for its EVs.

The outlet reports that Hyundai is starting a two-year joint venture with South Korean-based battery makers that started this year. Hyundai is on track to complete development of its LFP batteries in 2024. Once completed, the batteries will be used in Hyundai and Kia’s small, entry-level electric cars starting in 2025.



A Hyundai spokesperson declined to comment on the venture, but told the outlet that the automaker is “looking into working with small battery makers as well as large companies (Like LG Energy Solution, Samsung SDI, and SK On) here in Korea.”

The report claims that Hyundai currently uses LFP batteries in vehicles like the Kona EV and the Kia Ray EV sedan from CATL. The “deepening tech trade war between China and the U.S. and its allies” is one of the major reasons why Hyundai is looking to develop its own LFP batteries, claims The Korea Herald. Another reason for Hyundai to move away from using CATL’s batteries is for its EVs to meet the requirements for the federal tax credit.



Generally, LFP batteries are seen as a better option than current lithium-ion batteries that either have a blend of nickel, manganese, and cobalt (NMC) or nickel, manganese, cobalt, and aluminum (NMCA). Unlike these batteries, LFP batteries don’t rely on nickel or cobalt, which can be pricey and difficult to mine. LFP batteries are also safer from a potential fire standpoint, as they don’t have oxygen, and are expected to have a longer life cycle. They’re not perfect, though, as they’re not as energy-dense as NMC or NMCA batteries, have poor cold-weather performance, and are heavier than lithium-ion batteries.

Earlier this May, Hyundai confirmed a joint battery venture with LG that would see both companies make batteries for EVs that are made in America. The two companies will work out of a plant in Georgia that’s set to go live in 2024.