According to a new report, Hyundai Motor Group is forming a powerhouse EV alliance by joining forces with fellow South Korean tech giants Samsung, SK, and LG.
After a successful introduction to the market, Hyundai Motor Group, including Kia and Genesis, has already revealed plans to become a top three global EV producer by 2030.
The automaker is using the electric era to reimagine its brands, a move that is already paying off. Hyundai’s first dedicated EV, the IONIQ 5, is an electric SUV with up to 310 miles of range and all the extras like 800 V fast charging and vehicle-to-load (V2L) capabilities.
As Hyundai Europe president and CEO Michael Cole explains, “brand loyalty doesn’t seem to be as strong in EVs,” as the IONIQ 5 is attracting a new premium base of customers.
Kia is doing the same with its first dedicated electric model, the EV6, with plans to build upon its momentum with its flagship EV9 electric SUV.
Meanwhile, Genesis continues expanding its presence in the EV era. Hyundai’s luxury brand recently revealed innovative features for its GV60 electric SUV, including facial recognition to allow entry without keys or any physical touch.
Industry officials stated Monday that Hyundai is now teaming up with other South Korean market leaders, including Samsung, SK, and LG, to form an EV alliance and boost sales in the region.
According to The Korea Times, the EV alliance anticipates using Samsung’s autonomous-driving semiconductors and SK’s batteries on Hyundai and Kia electric models. Meanwhile, LG will supply organic light-emitting diode (OLED) instrument panels to guide drivers.
The report notes Hyundai is establishing close ties with the domestic tech giants to prepare for the auto industry’s future, including electric and autonomous cars.
An industry official stated:
Synergy effects are expected to occur through collaborations among domestic companies which are anticipated to have a significant impact on the development of the domestic industry.
The move comes after all companies in the alliance have invested heavily to boost their competitiveness in the rapidly evolving auto industry.
LG competes for the top two spots globally in the major components business, with affiliates including LG Display (panels), LG Innotek (camera modules), LG Magna (powertrain), and LG Electronics (OS and infotainment).
LG Energy Solution, SK On, and Samsung SDI are market leaders globally in the EV battery sector. Samsung Electronics also supplies semiconductors to Audi and Volkswagen.
As the race to introduce electric vehicles heats up, the alliance is expected to strengthen as the South Korean tech giants can complement each other’s successes.
Hyundai is searching for domestic companies to establish partnerships with and strengthen its supply chain.
An EV alliance with Samsung, SK, and LG could significantly boost the automaker’s chances of hitting its goal and becoming a top three EV producer globally by 2030. By bringing in domestic technology, Hyundai can cut transportation costs and establish close communication lines for future research and development.
Hyundai plans for global EV export volume to reach 3.64 million units by 2030 after an around $18 billion (KRW 24 trillion) investment to boost EV production and exports in collaboration with Kia and supplier Hyundai MOBIS earlier this year.
FTC: We use income earning auto affiliate links. More.
You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.
This content was originally published here.
