Hyundai and sister brand Kia have forged an unprecedented alliance with South Korea’s three largest battery producers in a bid to strengthen electric vehicle safety and restore the nation’s competitive edge against China’s growing dominance.
At Hyundai’s Namyang R&D Center, both automakers signed a memorandum of understanding with LG Energy Solution, Samsung SDI, and SK On, formalizing a yearlong collaboration that stemmed from a high-profile EV fire incident in 2024.
The agreement represents the first time South Korea’s top automakers and battery suppliers have joined forces on such a scale.
Five pillars of cooperation
The alliance will focus on five core areas designed to raise the safety, quality, and transparency of EV batteries. Jointly developed patents in materials and design will target risks such as short circuits and thermal runaway.
The companies also committed to creating a digital “battery passport”, which will be mandatory in the EU by 2027, to trace each unit from production through disposal.
In manufacturing, the group intends to apply AI-powered quality control systems to reduce defects, while new engineering standards will prioritize resilient designs that can prevent fires before they start.
To complement these efforts, the partners will collaborate with the National Fire Research Institute to develop real-world fire detection and suppression systems, as well as updated emergency response protocols.
From rivals to partners
The cooperative effort marks a noticeable departure from the historically siloed approach of South Korea’s EV industry. “The government and companies must become one team,” said LG Energy Solution CEO Kim Dong-myung, who also chairs the Korean Battery Industry Alliance. “Only through unity can we secure Korea’s future competitiveness.”
The agreement comes as South Korea’s battery sector faces mounting pressure from Chinese rivals. In the first half of this year, China’s CATL alone commanded 38 percent of the global EV battery market, while BYD held 17.4 percent, according to CnEVPost.
Together, the two Chinese manufacturers accounted for more than half of the worldwide supply. By comparison, South Korea’s big three—LG Energy Solution, Samsung SDI, and SK On—collectively held just over 17 percent, down from 23 percent a year earlier.
China’s advance
The erosion has alarmed policymakers in Seoul, who view EV battery technology as a national strategic asset. The new Hyundai-Kia partnership, supported by government ministries, is intended not only to shore up safety but also to slow China’s advance.
The Chinese industry is also making significant strides in the field of safety. As of next year (1st of July 2026), the ‘No Fire, No Explosion’ regulation comes into effect.
Essentially, new batteries in China are now prohibited from exploding or catching fire during a thermal runaway, updating the current standard, which previously only required an alarm.
CATL was the first worldwide to align with these requirements, already meeting them with the Qilin battery, which is used by Lotus, Zeekr, and Xiaomi, among others.
