Hyundai, Kia launch project to develop LFP batteries without precursors

Hyundai and Kia have partnered with Hyundai Steel and EcoPro BM to develop lithium iron phosphate batteries without precursors, a massive cost-reduction method.

Executives of Hyundai Motor and Kia, Hyundai Steel and EcoPro BM take a photo after having a discussion on a government-led project to develop lithium iron phosphate batteries without precursors in Daegu on Wednesday. [HYUNDAI MOTOR]

Hyundai Motor is targeting the development of lithium iron phosphate (LFP) batteries without precursors, a potentially significant cost-reduction method, in a bid to compete with Chinese contenders.

Hyundai and Kia said Thursday they launched the government-aided four-year project jointly with Hyundai Steel and EcoPro BM, an EV materials maker, to develop technologies to make cathode materials in the absence of precursor.

Hyundai is pushing toward a direct synthesis process, which is considered an environmentally friendly and cost-competitive approach compared to the traditional manufacturing method that adds lithium to precursor materials like phosphate and iron sulfate.

The removal of precursors from the process can cut production costs and reduce hazardous substance emissions, Hyundai said.

Cathodes are the most expensive ingredients in EV battery manufacturing, making up 40 percent of the cost. LFP batteries are increasingly preferred by global automakers due to their low cost and lower fire risk. Chinese players currently dominate around 80 percent of the LFP battery market.

Under the project, Hyundai and Kia will work with Hyundai Steel to develop high-purity fine iron powder-processing technology using domestically recycled iron.

EcoPro BM will then use this technology to develop directly synthesized LFP battery cathode materials using raw iron powder materials.

If successful, the LFP batteries will likely have a higher charging performance in low temperatures, which will help the automakers advance their fast-charging technologies.

“Through this project, we aim to reduce import reliance and enhance the technological competitiveness of the country and Hyundai Motor Group by internalizing necessary technologies," said Jung Soon-joon, head of the electrification and driving materials development at Hyundai Motor and Kia.

BY SARAH CHEA [chea.sarah@joongang.co.kr]