Author: Zhu Yulong

Kia’s MY2023 Kia Niro EV (e-Niro) sold in Korea uses batteries from CATL, equipped with a 64.8/68 kWh (usable/total energy) battery. The battery is now starting to be unboxed by Korean counterparts – using a very conservative design, as shown below, for a total of 24 modules, each with a capacity of 2.83kWh, in a 1P4S arrangement.

This article mainly discusses the design of this battery and Hyundai-Kia’s subsequent battery choices, to see how much market share Chinese battery companies can gain in the second round of platformization.

In fact, demand for power batteries is also quite large in markets outside of China – from January to July 2022, the electric vehicle battery capacity in markets other than China was 105.5GWh, a year-on-year increase of 40.3%, with steadily rising growth.

LG Energy Solutions ranked first with 31.1GWh, a year-on-year increase of 18%. It is worth noting that China’s CATL ranks third with a 119.2% growth rate.

Niro BEV product

We know that previously Hyundai-Kia’s share was mainly divided between SK IN and LG, but the KONA BEV recall brought a lot of pressure to Hyundai Motor. Currently, Hyundai-Kia mainly sells models around 800V, with one being the Hyundai Ioniq5 series and Kia’s EV6 series.

This product is a 400V product and also belongs to the pure electric vehicle model of oil-to-electricity conversion, targeting lower entry costs, with previous sales mainly focused on South Korea and Europe.

From a practical perspective, this design is very classic (already obsolete in China) and is built using VDA’s 355 standard modules. The 68kWh is divided into 24 modules, each containing 4 large battery cells with a width of 148mm. Compared to this design, the cost of soft pack battery cells is still somewhat challenging.

Evolution of Hyundai’s EMP

Hyundai is still very serious about electrification. Its next-generation battery system standardizes 9 types of battery processes consisting of lithium battery cells, batteries, and packs. In addition to increasing module ratios to improve energy density, it has been changed to a cell-to-pack method. The CTC technology that directly integrates cells and chassis is also being considered.

From the perspective of 400 and 800V, the eM series uses 800V entirely, divided into performance and basic versions. The former only has a ternary scheme, while the latter includes both ternary and lithium iron phosphate versions. Only the eS series has a 400V system. Through new designs, the plan is to increase battery energy density by 50% and reduce costs by 40% compared to 2021, along with a 35% reduction in motor costs and a 30% reduction in weight, by 2030.

Hyundai and LG’s joint venture battery factory can supply 10GWh, and 50% of the next-generation batteries after 2025 will need to be purchased locally, including some from the joint venture battery factory. Judging from the current situation, to tap into the low-cost and high-volume market, both lithium iron phosphate and ternary battery cells will be purchased. In terms of investment, the main focus is on next-generation battery technology and solid-state batteries, accumulated through global startup enterprises. By 2030, Hyundai requires 170GWh of batteries (119GWh for Hyundai and about 51GWh for Kia) and will gradually add qualified suppliers.

My understanding is that Hyundai-Kia has missed the opportunity for electrification in China during this global wave, so the overall pace is still centered around Europe and the United States. The layout in Europe is relatively faster, but a surprise need for building factories in the United States means that Hyundai-Kia will need to reconsider their procurement strategy for localizing the region.

In summary: The rapid iteration of Chinese battery cells and structural designs is highly likely to be exported globally. There will be many aspects to explore when the European and American-designed battery systems, particularly in terms of soft pack and cylindrical formats, but there is little to learn from the square shell designs. We have almost exhausted all design possibilities.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.