Hyundai Motor Group will enhance partnership with LG Group to create a comprehensive ecosystem of battery business through the joint launch of a battery leasing program, the second of its kind after South Korea’s auto giant’s partnership with SK Group this summer.

According to government sources on Thursday, Hyundai Motor Co., Hyundai Glovis Co. and LG Chem Ltd. are expected to sign a memorandum of understanding (MoU) to work on EV battery rental or leasing program on Oct. 29.

Details about the venue and schedule were not disclosed, but trade minister Sung Yun-mo reportedly will be present at the event.

The partnership would be the first achievement from the symbolic get-together of the two chiefs of Hyundai Motor Group and LG Group – Chung Euisun and Koo Kwang-mo, respectively – in June. The news also came just a day after Chung was inaugurated as the auto conglomerate’s chairman after two years at the helm in place of his father and Honorary Chairman Chung Mong-koo.

Industry watchers expect their partnership would focus on creation of a comprehensive ecosystem for EV battery business. Following the MoU, they will kick off discussions on a collabo business concept dubbed ‘battery as a service (BaaS)’ solutions for repair, rental, recharge, reuse and recycling will begin, experts say.

In August, Hyundai Motor already signed the same MoU with SK Innovation Co. for BaaS cooperation.

Hyundai Motor earlier picked LG Chem as the second supplier for its upcoming electric models built on its proprietary EV-dedicated platform dubbed electric-global modular platform (E-GMP). Hyundai Motor and Kia Motors are readying their EV-specific platform for mass production from 2021, and the battery packs in the new underpinning frame assigned to LG Chem will be supplied from 2022.

Hyundai Motor and Kia Motors earlier announced to expand their EV lineup to 44 by 2025, of which 23 are all-electric vehicles.

By Oh Chan-jong, Park Yun-gu and Lee Ha-yeon

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