One of the challenges in the automotive industry's transition to electric drive is ensuring a continuous supply of batteries in accordance with the demand that will increase in the coming years.
At least for the American market, it seems that Hyundai promises such a continuous supply after announcing a huge collaboration with the Korean technology giant SK for the supply of batteries for the Hyundai electric models intended for the North American market.
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The scope of the transaction has not been published as of now, but it is estimated at several billion dollars.
A significant part of the batteries should go to a new factory that Hyundai is building in Georgia at a cost of 5.5 billion dollars, the establishment of which it announced last month.
The factory that will open in 2025 will be able to assemble about 300 thousand electric cars per year.
In doing so, Hyundai intends to take advantage of the Biden administration's promise of tax breaks for electric cars made in the US.
The new production plant and the continuous supply of batteries will help Hyundai realize a large part of its five-year plan to introduce 17 electric models under the Hyundai and Genesis brands and another 14 electric models from Kia, with the goal being to reach the production of 3.23 million electric cars by the end of the decade.
Hyundai's range of electric models already includes the electric version of the small Kona crossover alongside the unique crossover Ionik 5 and the Ionik 6 designed to compete with the Tesla Model 3. Next year it is expected to be joined by a large crossover with 7 seats called the Ionik 7 and electric versions based on familiar models.
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