Hyundai Motor is rumored to purchase US$1 billion in batteries from CATL this year

According to foreign media reports, the bosses of South Korean auto giant Hyundai Motor and Chinese battery manufacturer CATL met in March this year to discuss further cooperation between the two parties.

It is reported that CATL Chairman Zeng Yuqun visited South Korea in March this year and met with Hyundai Motor Executive Chairman Chung Eui-sun. More executives from CATL are expected to visit South Korea this month for more discussions.

Last year, Hyundai Motor purchased hundreds of billions of won worth of batteries from CATL. According to people familiar with the matter, Hyundai Motor will purchase batteries worth US$1 billion from CATL this year. Hyundai Motor's new Kona electric car and Kia's Gen 2 Ray to be launched later this year will use CATL batteries. Ray will use lithium iron phosphate batteries purchased from CATL.

Image source: CATL

Hyundai Motor is also pursuing a cooperation model with CATL similar to that between Ford Motor and CATL. It is reported that in February, Ford announced that it would invest US$3.5 billion to build a lithium iron phosphate battery factory in Marshall, Michigan, USA. Ford will wholly own the plant, while CATL will provide technical and service support for the plant's production.

In addition, Bloomberg reported last month that Tesla is considering building a battery factory in Texas, USA, to supply batteries to its local electric vehicle assembly plant, but the final location has not yet been finalized. Like Ford's deal structure, Tesla will own and operate the new factory while licensing technology from CATL.