BYD, KG Mobility in talks to build EV battery plant in Korea

BYD, the world’s No. 3 electric vehicle battery producer, and KG Mobility Corp., formerly Ssangyong Motor Co., are in talks to build a joint cell factory in South Korea where smaller carmakers are scrambling to secure the key component to power the motors of the eco-friendly automobiles.

The Chinese cell manufacturer and the South Korean automaker specializing in sport utility vehicles aim to start mass production of the battery pack plant in January 2025, according to industry sources in Seoul on Sunday. The facility will be the first joint factory between a foreign cell producer and a local carmaker in the country.

The two companies have yet to decide on details such as location and capacity, a KG Mobility official said.

The factory is likely to be set up near KG Mobility’s plant in Pyeongtaek, about 80 kilometers (50 miles) southwest of Seoul, industry sources said.

TORRES EVX, PICKUP TRUCK, LARGE SUV

“To expand EV lineups, they need to increase production efficiency by securing battery packs from nearby facilities of the car plant,” said one of the sources. “The automaker may have partnered with BYD to procure battery packs at home.”

KG Mobility plans to install lithium iron phosphate batteries to the Torres EVX, an electric trim of its mid-sized SUV to be launched in September. The SUV is the first South Korean EV equipped with LFP batteries.

The carmaker was known to have been working on the development with BYD since 2021.

KG Mobility aims to use BYD’s batteries for its electric pickup truck with the code name O100EV to be unveiled by 2025 and a large electric SUV with the code name SUV-F100EV.

RENAULT IN TALKS WITH CATL, BYD, PANASONIC, AESC, NORTHVOLT

French automaker Renault S.A. with a plan to manufacture EVs in Busan, South Korea’s largest port city, has been looking for battery makers in other countries.

Its South Korean unit was reportedly in talks with not only Chinese cell manufacturers including the global leader Contemporary Amperex Technology Co. (CATL) and BYD but also Japan’s Panasonic and Automotive Energy Supply Corp. (AESC), as well as Sweden’s Northvolt AB.

Renault Korea Motors Co. has faced difficulties in procuring batteries from South Korean makers such as LG Energy Solution Ltd., SK On Co. and Samsung SDI Co. although the automaker's discussions with battery suppliers had been for EV production from 2026.

Those cell manufacturers have rushed to build factories in the US to maximize benefits from Washington’s policy that favors products made in the country or its trading partners.

The three battery makers are leading 11 projects for major production facilities in the US out of 15 plants coming online by 2025, according to the US Department of Energy.

“Smaller automakers in South Korea will seek more cooperation with foreign battery makers,” said a battery industry source in Seoul.

Write to Nan-Sae Bin and Sungsu Bae at binthere@hankyung.com
 

Jongwoo Cheon edited this article.