Hyundai Motor announces investment of $100 million in battery start-up1 min read . Updated: 05 Jul 2021, 03:54 PM IST
Hyundai's investment in SolidEnergy System (SES) which is a lithium metal battery startup shows the automaker's intention to get a strong foothold in the electrification sector.
- Report also suggests that Hyundai will focus on developing hydrogen fuel cell-based urban air mobility.
Hyundai Motors has announced that is investing about $100 million to buy a stake in a lithium metal battery startup, SolidEnergy System (SES), as reported by an agency. Based in the US, it is an all-solid-state battery developer. This move is being seen as a positive step by the automaker major as it wants to secure its position in the sector of next-generation battery technology.
As quoted in the report, an official from Hyundai Motor said that this investment is part of an extensive investment plan in various companies related to electrification. SES is a startup founded in 2012 that separated from the Massachusetts Institute of Technology (MIT) and it is well-known for its development of anode-free lithium metal batteries.
These batteries are said to have 10 times more energy density compared to lithium-ion batteries (LIBs). The company's website reflects shareholders like General Motors Co, SK Inc and Tianqi Lithium Corp among others.
Analysts say that this move is aimed at securing technology for next-generation batteries under the automaker's strategy to internalise batteries. At the beginning of the year, Hyundai Motor had put significant focus to expand its research team on the development of next-generation batteries at its R&D headquarters.
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It is being said that this investment also helped Hyundai Motor to secure a bridgehead to the urban air mobility (UAM) market. This market is expected to hit 360 trillion won by 2030. A report also said that the company will focus on developing hydrogen fuel cell-based UAM for logistics and transportation in Korea. General Motors also announced a partnership with SES in March to boost its battery development plans.