Chinese electric vehicle giant BYD is engaged in discussions with South Korean automaker KG Mobility, previously known as Ssangyong Motor Co, to forge a collaborative venture for the construction of a battery cell manufacturing facility within South Korea. This strategic move is set to fortify the supply chain for a local automaker, ushering in new possibilities for the electric vehicle (EV) industry on the Korean peninsula.
According to a recent report from the Korea Economic Daily on August 21, sources close to the matter have revealed that BYD and KG Mobility are laying the groundwork for a groundbreaking battery pack production plant, with ambitions of commencing mass production as early as January 2025. Notably, this initiative represents the first-of-its-kind partnership between an overseas battery producer and a domestic automaker, marking a significant milestone for the South Korean automotive sector.
While finer specifics such as the plant’s exact location and production capacity remain on the negotiating table, an official from KG Mobility confirmed the ongoing discussions. The Korea Economic Daily suggested the possibility of the plant being situated in proximity to KG Mobility’s Pyeongtaek facility, strategically positioning it approximately 80 kilometers southwest of the capital city, Seoul.
One of the driving factors behind such collaborations is the imperative for car manufacturers to optimize their electric vehicle production processes. A key strategy in achieving this is the establishment of battery pack facilities in close proximity to their car manufacturing plants. The potential partnership between KG Mobility and BYD aims to streamline the EV production chain by sourcing battery packs locally, thereby elevating production efficiency and reducing logistical complexities.
KG Mobility has outlined plans to incorporate lithium iron phosphate (LFP) batteries into their upcoming mid-sized electric SUV model, the Torres EVX. Anticipated for launch in September, the Torres EVX is poised to be the pioneering electric vehicle in South Korea to feature LFP batteries, known for their safety and stability advantages.
Sources have revealed that KG Mobility and BYD’s cooperative efforts extend beyond the battery plant venture. The South Korean automaker has been collaborating with BYD since 2021, intending to integrate BYD’s cutting-edge battery technology into their forthcoming electric pickup truck, codenamed O100EV, as well as a large electric SUV with the internal designation SUV-F100EV, slated for a 2025 release.
As the automotive landscape evolves towards electrification, strategic alliances such as this hold the potential to reshape the industry’s landscape and strengthen the foundation of electric vehicle production. The collaboration between BYD and KG Mobility stands as a testament to the ever-growing synergy between international innovators and local automakers, driving South Korea closer to a sustainable and technologically advanced automotive future.
