Kia is about to launch their new, budget-friendly electric vehicle (EV), the KIA EV3 in a world premiere next week, on the 23rd. This new model is set to feature advanced batteries produced through a joint venture between Hyundai Motor Group and LG Energy Solution, marking a strategic shift from using Chinese batteries in mid- to low-priced EVs. This move is expected to enhance the EV3’s price competitiveness and diversify the supply chain.
Kia EV3 Concept
According to industry insiders, the EV3, which is set to be unveiled on the 23rd of May will be equipped with batteries from HLI Green Power. These models are slated for global markets outside of China.
HLI Green Power is a battery manufacturing plant established in the Karawang New Industrial Complex in Indonesia, a joint venture between Hyundai Motor Group and LG Energy Solution. It is notable as the first battery factory in Southeast Asia established by a South Korean company. Recently, mass production has commenced at this facility.
One of HLI Green Power’s key advantages is its location in Indonesia, the world’s leading country in nickel reserves. The local procurement of nickel and lower labor costs contribute to reducing battery prices, what could make the EV3 an even more attractive option for budget-conscious consumers.
Diversified Supply Chain
Historically, Hyundai Motor Group has relied on Chinese batteries for its mid- to low-priced EV models. For instance, the Kia Ray EV, priced around 20 million KRW, uses CATL’s LFP batteries, while the Kia Niro EV and Hyundai Kona Electric feature CATL’s NCM batteries. The collaboration with HLI Green Power is expected to diversify Hyundai’s battery supply chain for these models.
Production ready EV4 will use the same batteries when launched earlier 2025
Future Models
Following the EV3, there is a strong possibility that the sedan-type EV4 will also use batteries from HLI Green Power. Both the EV3 and EV4 are anticipated to be priced in the 40 million KRW range, with the potential for further price reductions through national subsidies and tax benefits.
Advanced Battery Technology
HLI Green Power specializes in producing NCMA lithium-ion batteries, which include nickel, cobalt, manganese, and aluminum. These batteries are designed to enhance output while reducing chemical instability, making them a reliable and high-performing option for Kia’s new electric vehicles.
Conclusion
The introduction of Kia’s EV3 with advanced, affordable batteries from HLI Green Power marks a significant step forward in the EV market. With improved price competitiveness and a diversified supply chain, the EV3 is poised to capture the attention of eco-conscious and budget-savvy consumers worldwide. The collaboration between Hyundai Motor Group and LG Energy Solution underscores a strategic approach to innovation and sustainability in the rapidly evolving electric vehicle industry.
