Hyundai and Kia launch new LFP battery project for lower-priced EVs
South Korea’s leading automakers are doubling down on their efforts to cut EV costs with new battery tech. Hyundai and Kia are teaming up to develop LFP battery materials to power up lower-priced EVs.
Hyundai and Kia eye cheaper EVs with LFP battery tech
Hyundai and Kia launched a new project to develop lithium iron phosphate battery cathode material for future EV models.
As part of the initiative, the automakers are teaming up with Hyundai Steel and EcoPro BM, South Korea’s leading battery materials maker, to develop a precursor for LFP battery cathode material production.
Korea’s Ministry of Trade, Industry, and Energy will also support the four-year project as part of its LFP Battery Technology Development plan.
“To meet future demand in the EV market, rapid technological development and effective battery supply chain establishment are essential,” Hyundai and Kia’s electrification and driving materials boss, SoonJoon Jung, said.
The new project is designed to “reduce import reliance” while securing Hyundai a stable supply chain as the industry shifts to electric.
Although most LFP battery cathode materials are made by adding lithium to precursor materials such as phosphate and iron sulfate, Hyundai and Kia are developing a more advanced process.
Using a direct synthesis process, adding iron powder and lithium simultaneously skips the need to create a separate precursor. According to Hyundai, this reduces hazardous substance emissions and cuts production costs.
More affordable EVs are coming
Hyundai claims its new method can boost production efficiency while driving lower costs compared to current processes.
With Hyundai Steel, the automakers plan to develop “high-purity iron powder” processing tech using domestically recycled iron. EcoPro BM will then use the tech to develop LFP battery cathode material.
By advancing new LFP battery tech, Hyundai and Kia want to “spearhead” advancements in the EV battery market.
The announcement comes as China continues dominating the global EV battery market. According to SNE Research, China’s CATL accounted for 31.6% of global EV battery sales in the second quarter. With BYD’s 11.9% share, China’s leading battery makers accounted for 43.5% of the worldwide market in Q2.
South Korea’s LG Energy Solution (14.7%), Samsung SDI (7.1%), and SK On (4.3%) made the top five in global EV sales.
China is leading the low-cost EV movement with vehicles like BYD’s Seagull selling for under $10,000 (69,800 yuan), but South Korea is not far behind.
Hyundai and Kia launched some of their most affordable EVs this year, including the Kia EV3 and Hyundai Casper Electric (Inster EV overseas).
The Casper Electric starts at just $22,800 (31.5 million won) in Korea. With incentives, Hyundai said the Casper EV could be bought for as little as $14,500 (20 million won), while Kia’s EV3 costs $30,700 (KRW 42.08 million).
In Europe, Hyundai’s Casper (Inster) EV will start at less than $27,000 (25,000 euros) with up to 220 miles (355 km) WLTP range. Kia’s EV3 starts at around $42,000 ((£32,995) with up to 372 miles (599 km) WLTP range.
Electrek’s Take
Hyundai and Kia are already climbing the global EV sales ranks. In the second quarter, the Korean automakers topped Ford and GM in US EV sales, claiming over 10% of the market.
Korean automakers already have some of the lowest-priced electric vehicles in the US, with the Hyundai Kona Electric starting at under $35,000 and Kia’s EV6 starting at $42,600. However, Hyundai and Kia are planning to launch even more affordable EVs.
Kia’s EV3 is expected to start at around $35,000 in the US, while its EV4 electric sedan, set to launch next year, will be priced at around $39,000.
Hyundai is opening its massive Metaplant America in Georgia this fall, enabling US-built electric models.
The first EV set to roll off the assembly line is Hyundai’s updated 2025 IONIQ 5. Once battery production begins in GA in 2025, Hyundai expects vehicles built at the plant will qualify for the $7,500 EV tax credit. Until then, the company is passing on massive discounts through leasing.
With advanced new battery tech, Hyundai and Kia expect to continue lowering EV production costs, enabling more affordable models.
Source: Hyundai Motor Group
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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