As I reported last week, Toyota and BMW joined forces to develop a more efficient lithium ion battery. Turns out they weren’t the only ones teaming up to advance this stuff.
Hyundai Heavy Industries and Canadian auto parts maker Magna E-Car Systems have just agreed to a $200 million joint venture to develop the next generation of long-range lithium ion batteries. The deal is a 60-40 split with Magna E-Car taking the larger stake. Under the agreement, the two companies will set up a production line in Ontario, Canada with the hopes of being able to produce 1,000 battery packs annually beginning in 2014.
Hyundai’s ultimate target is a 30% share of the electric car market in Europe and North America. Driven by this goal, Hyundai is building eight additional plants in both territories in order to crank up its output to 400,000 by 2018 and 800,000 by 2020.
Despite getting into the electric car game a little later than most (although Hyundai claims it has been developing components for electric vehicles since 1992), analysts aren’t worried at all.
“Hyundai Heavy’s highly vertically integrated operations, as well as its edge in electrical, electronics and engineering technologies, will somewhat help offset its late entry into the market,” analyst Lee Jong-hwan of Dongbu Securities stated.
Hyunadai Heavy Industries Enteres EV Market originally appeared in Green Chip Stocks. Green Chip Review is a free 2x-per-week newsletter, is the first advisory to focus exclusively on investments in alternative and renewable energies.