Categories: Environment

Volkswagen will source from Hyundai for the batteries of its electric cars

Volkswagen and Korean Hyundai have just sealed a partnership for the German group’s future 100% electric cars.

The reputation of the Kia/Hyundai group is frankly well established in terms of electric cars. Even if the models offered do not transpire automotive passion, it is clear that they are among the most successful in their segmentsand we do not fail to highlight this regularly in our columns at Auto Plus.

This is not necessarily the case for all manufacturers, and some even see their lead acquired over the decades melt like snow in the sun with the advent of electric. As you are probably aware, the Volkswagen group is not in the shape of its life, even if the electric models offered by its various brands are far from bad.

A major partnership for Volkswagen

Still, in its transformation, the Volkswagen group continues to place its pawns. Today we learn that Hyundai Mobis has partnered with Volkswagen to the supply of battery systems that will equip the group’s electric cars.

The agreement relates specifically to the Korean manufacturer’s battery system assembly (BSA), described as “a complete product that combines a battery pack with a battery management system (BMS) and other components to ensure safe and efficient battery operation in an electric vehicle”.

The Korean firm says that its BSA will be integrated into the platform of future next-generation electric Volkswagens. But that’s not all, because Hyundai Mobis will also build a production base in Spain, close to the next Volkswagen Group plant.

A contrarian strategy?

Given the competition between the two groups, this choice seems rather curious to us, even if there is, from a financial point of view, a win-win agreement, since the German group will certainly save several million euros in sourcing directly from a reliable player in electric mobility, while the Korean group secures a significant new financial entry.

For Volkswagen, the partnership with Korean Hyundai follows the partial acquisition of Chinese Xpeng, which allows the Germans to get their hands on the technologies of the Asian firm. In any case, to deal with its multiple problems encountered in its electrification process, the Volkswagen group seems to have changed its strategy and is focusing on outsourcing. An astonishing policy when most manufacturers now want to control their production chain from A to Z.

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