As global automakers hurry to internalize batteries, a core component of electric vehicles, the secondary battery industry is watching nervously. With Tesla and BYD followed by Hyundai Motor, Toyota, and General Motors (GM) accelerating their own battery development, the competition for leadership in electric vehicles is intensifying.
According to the industry on the 1st, Hyundai Motor is building a battery research complex and a gigawatt-hour (GWh)-level production line in Anseong, Gyeonggi Province, known as the Mobility Alpha Line Anseong Center (MAAC), with a goal of starting operations in 2027. It is expected to go beyond simple battery research and development (R&D) to produce prototypes and conduct testing (performance verification).
The initial production scale is estimated at 1 to 2 GWh per year. Typically, 1 GWh is enough for about 13,000 to 15,000 electric vehicles. Considering that the purpose is prototype production and mass-production technology development, the scale is not small.
Hyundai Motor has been researching batteries for years and has expanded its internalization by operating dedicated battery teams at R&D centers in Namyang, Uiwang, and Mabu. It is also focusing on securing next-generation battery technologies, including pouch-type, prismatic, lithium iron phosphate (LFP), and solid-state.
Automakers are moving to internalize batteries to strengthen their negotiating power with battery makers and maximize electric vehicle performance and efficiency. Batteries are a key component that accounts for about 40% of the cost of an electric vehicle. Even without manufacturing them directly, securing technology allows them to apply batteries optimized for EVs and lower costs.
Major automakers in Japan, Europe, and the United States are also pursuing battery internalization. Toyota, together with its wholly owned battery subsidiary Primearth EV, is building a battery plant aimed at starting operations in 2028. Volkswagen has established its in-house subsidiary PowerCo and is building battery production bases in Europe and Canada.
GM is strengthening its technology around the existing Wallace Battery Cell Innovation Center in Michigan and the new Battery Cell Development Center. Like Hyundai Motor, it is also moving to secure raw materials, and recently, through a joint venture with the Canadian company Lithium Americas, it is developing the largest lithium mine in the United States in the Thacker Pass area of Nevada.
The battery industry is watching the move by automakers to internalize batteries. If automakers produce batteries themselves, even if not immediately, their pricing power will weaken and their footing will narrow.
However, given that the expense of building a mass-production battery plant is immense and that it takes a long time to secure production yield (the ratio of good products without defects among finished products), the prevailing view is that the market structure will not change in the short term. The battery industry is focusing on widening the technology gap by increasing energy density and shortening charging time, while responding by strengthening partnerships with other automakers.