HHI enters electric car battery business

South Korea’s Hyundai Heavy Industries (HHI) entered into the electric car battery market, which is considered a high-potential next generation sector, and is currently dominated by LG Chemical, Samsung SDI and SK Innovation. On the other hand, HHI’s affiliate, oil refiner Hyundai Oilbank announced that it will expand into the lubricant base oil market. The forays of the two companies are expected to ignite a four-way competition in the electric battery and lubricant base oil markets. HHI entered into a joint venture with Magna E-Car, a Canadian electric car parts supplier. The joint venture’s production plant is located in Ontario, Canada, and is expected to be fully operational by 2014. HHI invested US$800 billion in the venture, while Magna E-Car had a total investment of US$120 million. The Ontario plant is now test-producing electric car battery models which were developed through Magna’s battery cell technology. “We will build eight global production plants by 2020 including bases in North America and Europe, and raise electric car battery output to 0.80 million packs. Our goal is to clinch a 30 percent share of the North American and European markets,” HHI said through a company announcement. (April 25, 2012)