The bidding process to become a third-tier supplier for Hyundai Motor Group’s E-GMP (Electric-Global Modular Platform) has been narrowed down to SK Innovation, LG Energy Solution, and CATL. However, many predict that the amount of supply set aside for the third-tier supplier will be given to a battery cell joint venture that Hyundai Motor Company is pushing for.
Regarding few media coverages that reported that Hyundai Motor Group has selected SK Innovation to be the “third-tier supplier for the E-GMP” and that SK Innovation’s batteries will be used for the “Ioniq 7”, Hyundai Motor Group made a statement on Monday that the group plans to select more than one company to be third-tier suppliers and that it is still going through a selection process.
The group drew a line by stating that the report is not factual.
According to the industry, SK Innovation, LG Energy Solution, Samsung SDI, CATL, and others took part in the bidding process. However, Samsung SDI has been eliminated, and SK Innovation, LG Energy Solution, and CATL are competing against each other to be the third-tier supplier for the E-GMP.
As Hyundai Motor Company confirmed that there is a chance that it would select more than one company to be third-tier suppliers, there is now a great chance that the company will select CATL to supply batteries for its products in China and select either SK Innovation or LG Energy Solution to be the supplier for its products in South Korea and other countries except for China.
Many predict that a joint venture that Hyundai Motor Group is working on along with a South Korean battery supplier will be given the amount of supply designated for a third-tier supplier.
SK Innovation ($8.94 billion (10 trillion KRW)) became the first-tier supplier for the E-GMP while LG Energy Solution and CATL were selected as the second-tier suppliers. The orders given to LG Energy Solution and CATL are worth $14.3 billion (16 trillion KRW) and they are in process.
Staff Reporter Park, Taejoon | gaius@etnews.com