Hyundai Motor Group is proposing to construct its own high-speed DC chargers rather than depending only on outside vendors as part of a shift in its EV charging strategy. A 350 kilowatt charger bearing the Blue Plug trademark will soon be available from Hyundai Kefico Corp., a subsidiary primarily dedicated to engine and gearbox components.
Hyundai and Daeyoung Chaevi, which ran Chargers, have parted ways after a year of collaboration.
These in-house chargers will initially supply power to South Korea’s E-pit ultra-fast charging network. The E-pit network, which debuted in April 2021 and currently has 36 stations, is still in its infancy when compared to Tesla’s 106 Supercharging locations nationwide. The high expense of buying chargers from outside sources has been one barrier to E-pit’s growth.
Hyundai wants to solve this problem by producing its own chargers. Industry estimates place the average cost of a fast charger at $113,000; however, Hyundai wants to lower this number by managing every aspect of production. Although the company has not said if these chargers would be exported, it is obvious that Hyundai is aligning itself with Tesla’s successful approach of producing chargers internally.
Although this change of direction makes sense for Hyundai, it could be problematic for current E-pit providers like SK Signet and EVSIS Co. Additionally, it raises the possibility of more significant changes to the company’s electrification strategy, especially in light of the recent dissolution of a one-year agreement with Daeyoung Chaevi, which ran the E-pit systems and chargers.
In the end, Hyundai’s plan to produce chargers internally may be a game-changer, allowing it to quickly expand its E-pit network and become more competitive in the EV market. Hyundai is well-positioned to enter this industry and possibly tip the balance of power in the South Korean EV sector thanks to its existing experience in power electronics.
