SK Innovation to supply batteries to Hyundai IONIQ 7

SK Innovation Co. is set to supply batteries for the IONIQ 7, Hyundai Motor Co.’s large electric sport utility vehicle (SUV) to be unveiled in 2024 as South Korean battery makers are increasing cooperation with the world’s fifth-largest automaker.

SK Innovation won an exclusive contract to sell batteries for the new electric vehicle (EV), according to the industry sources on Sept. 22. Hyundai made a separate order for batteries of the IONIQ 7 since it excluded the model from the third batch of its dedicated EV platform, E-GMP, to be released in 2023-2024. For the third batch, SK Innovation secured an order to supply batteries to a large SUV of Kia Corp, Hyundai’s affiliate, while China’s CATL won orders to sell batteries for other models.

The IONIQ 7 is Hyundai’s first large electric SUV and third model to use the E-GMP. Hyundai teased the SUV during the IAA Mobility 2021 in Munich, Germany, drawing keen attention. The company is scheduled to unveil its concept later this year.

SK Innovation has been supplying batteries for the IONIQ 5 and the Kia EV6 whose strong demand raised the battery maker’s sales. Hyundai has sold 18,966 units of the IONIQ 5 abroad and 12,484 units in South Korea by the end-August since April when it launched the EV.

“Thanks to popularity of the two models, SK Innovation’s battery supply jumped,” said an industry source.

Separately, LG Energy Solution Ltd., SK Innovation’s local competitor, has secured a deal to supply batteries to the IONIQ 6, Hyundai’s second all-electric vehicle on an exclusive EV platform, to be released next year.

LG Energy is focusing on batteries for Hyundai’s EVs to be launched from 2024. The two companies started construction of a $1.1 billion battery cell plant in Indonesia earlier this month with a plan to complete the works in the first half of 2023. The factory will begin commercial production in the first half of 2024 with an annual capacity of 10 GWh of battery cells, enough for over 150,000 EVs.

Samsung SDI Co. is jointly developing with Hyundai an all-solid-state battery (ASSB), which maximizes safety. The next-generation battery is expected to be commercialized in 2027 at the earliest, according to the industry.

“The local top three battery makers are making various efforts to cooperate with Hyundai that are emerging as a strong EV maker,” said an industry source.

Write to Il-Gue Kim at Black0419@hankyung.com
Jongwoo Cheon edited this article.