The chiefs of two of South Korea’s largest conglomerates – Hyundai Motor Group and LG Group – met Monday to discuss the future of batteries for electric vehicles, which apparently included a discussion on the possibility of forming a joint venture in Indonesia.
Chung Eui-son, the executive vice chairman of Hyundai Motor, and LG Group chairman Koo Kwang-mo met Monday at LG Chem’s Ochang battery plant, along with a raft of other executives from the two companies.
According to a translated press release from LG Chem, the two companies met to discuss the technology and direction of future batteries such as long-life batteries, lithium-sulphur batteries, and all-solid batteries. Similarly, the two executive groups exchanged opinions on future battery concerns and discussed ways in which the two companies could cooperate.
The two groups also toured LG’s Ochang factory line and research lab.
Separately, according to “a person with direct knowledge of the matter” speaking to Reuters on Tuesday, the two companies are considering establishing an electric vehicle (EV) battery cell manufacturing joint venture in Indonesia.
The size of the investment required for such a joint venture or the possible production capacity have not yet been decided, according to Reuters’ source.
Unsurprisingly, neither company has been willing to confirm whether anything has been decided regarding a potential joint venture.
The meeting comes after Hyundai Motor Group – which includes both Hyundai Motor and its sister company Kia Motors – selected LG Chem in May as one of the battery suppliers for its upcoming new electric vehicles.
LG Chem will now be supplying batteries for hybrid cars produced by both Hyundai and Kia as well as batteries for EVs made by Kona Electric and Ionic Electric of Hyundai Motors. Additionally, LG Chem revealed that it has been selected as a secondary battery supplier for Hyundai’s Electric-Global Modular Platform (E-GMP) which is expected to begin mass production starting in 2022.