Hyundai Is Getting Ready To Manufacture Batteries “In-house.”

Hyundai Motor Group plans to develop and manufacture battery cells for electric vehicles in-house, amid growing concerns that it will fall behind in the battery race, according to local media in South Korea.

This decision was reportedly made after Chinese EV and battery giant BYD recently unveiled its megawatt charging platform.

According to Korea’s Chosun Daily, Hyundai Motor has created a team of experts within its manufacturing division to spearhead in-house battery development. The so-called “B Task Force” includes top engineers, including Yong Chul, head of manufacturing, and Choi Jae-hoon, head of battery development.

The Korean automaker already has a “battery” team. However, it mainly serves as a liaison between the company and battery suppliers, LG Energy Solution and SK On, for the integration of batteries into Hyundai, Kia, and Genesis models. While efforts to implement the plans are expected to continue, Hyundai sees the need to invest in its battery technology.

The South Korean company is not the first to bring battery production under its roof. Tesla produces its 4680 batteries used in the Cybertruck and Model Y, although Panasonic remains one of its main suppliers. BYD, as is well known, began its existence as a battery manufacturer in 1995. The Chinese company produces its own “Blade” batteries for electric cars and plug-in hybrids. Toyota also produces batteries for electric cars in Japan and has recently expanded its operations to other countries. The Japanese giant opened a $14 billion battery factory in North Carolina, where it produces batteries for hybrids, electric cars, and plug-in hybrids.

Developing batteries in-house brings several advantages. It allows automakers to produce units optimized for the right software and architecture. Once production volumes are scaled up, the cost benefits can be huge, as they can eliminate supplier fees and give companies greater control over raw materials and logistics. They can also speed up research and development and reduce exposure to supply chain bottlenecks. However, this requires a huge upfront investment and manufacturing expertise that traditional battery manufacturers like LG Energy Solutions have honed over decades.

• Also See: Hyundai And Kia Claim That Solid-State Batteries Will Not Be Available Until 2030