Hyundai Motor Group (HMG) is set to launch a Battery as a Service (BaaS) offering for its electric vehicles in South Korea in the second half of this year, aimed at enhancing accessibility in the domestic market.
A company official stated that the service is currently in the demonstration stage, with utilization plans to be rolled out upon completion.
However, HMG faces a legal challenge in introducing BaaS due to the current ‘Automobile Management Act’ in South Korea, which prevents companies from separating battery ownership from the vehicle. The government is working on an amendment to allow interested companies, including HMG, to launch BaaS.
HMG plans to offer BaaS in commercially available vehicles like the Kia Niro Plus. The Purpose-Built Vehicle (PBV), based on the first-generation Kia Niro Electric, features a 150 kW/395 Nm motor and a 64 kWh battery pack, capable of traveling 392 km on a full charge. Priced from KRW 46 million (approximately €31,000), the vehicle includes a 10-year/200,000 km warranty for the high-voltage battery pack.
In South Korea, the traction battery pack is the most valuable component of an EV, accounting for about 40% of the cost of an electric car worth KRW 50 million (approximately €33,500). Excluding the full cost of the battery can significantly lower the upfront retail price, making EVs more affordable.
Battery swapping offers customers flexibility, allowing them to upgrade to a more advanced battery pack for longer range or downgrade to save costs when less range is needed.
