By Kate Yuan

South Korean automaker Hyundai will increase the use of Chinese batteries, and less from Korean battery makers such as LG Energy Solutions and SK, South Korean media The Elec reported on December 9.

Hyundai plans to apply Chinese batteries to existing electric vehicles next year including Kona EVs, which now outsells Ioniq 5 in Europe, a source familiar with the matter said.

The company has ramped up efforts to use batteries made in China to accelerate supply chain diversification. In the future, LG Energy Solutions and SK On will mainly supply batteries to the E-GMP platform, while Chinese suppliers will be responsible for the remaining models. By region, Chinese suppliers are likely to provide power batteries for models sold in South Korea, China and Europe.

"The cooperation between Hyundai Motor Group and CATL has no choice but to expand in the mid- to long-term," an industry insider said.