A joint venture of MOBIS and LG Chemicals has officially launched, where they will research, develop and make battery packs for eco-friendly cars. While the entire world is zeroing in on the future of green vehicles and governments are becoming more involved in obtaining core technologies for them, the union of two major players in Korea at the end of last year has gained a lot of attention.
MOBIS announced on the 10th that HL Green Power, a joint venture with LG Chemicals, has completed its business registration and has officially been launched.
The name HL Green Power takes the H from the Hyundai Motor Group and L from the LG Group. The word Green comes from its purpose as an environmentally-friendly business and Power symbolizes the company’s focus on batteries.
The company started out with a capital base of 29 billion won and MOBIS and LG Chemicals have each contributed 51:49 percent respectively; Executive Director Park Sang-kyu from the MOBIS module business will take on the additional responsibility as HL GreenPower’s CEO.
The joint venture will be located at the Uiwang Complex in Gyeonggi-do, currently the site of the MOBIS HEV core parts factory, where the campus will be expanded to house a plant expected to produce 200,000 units per annum. This plant will have the battery cells supplied by LG Chemicals, which are then made into packs and supply them to MOBIS. Once a short period of test production is complete, mass manufacturing will begin later this year. MOBIS currently supplies electronic motors and integrated package modules (IPM) to Hyundai and Kia and battery packs are the major core parts that make up the IPM.
A sum of 46 billion won will be invested by 2014 and the current 200,000 unit output will at that point be doubled to 400,000 units per year. Concurrently, the staff of 50 researchers and production workers will also be largely increased in the near future.
With the official launch of the venture, large synergistic effects of a successful fusion of LG Chemicals, whose lithium-ion batteries sport the best technology in the world and MOBIS, which has a world-class design and manufacturing technology in core parts and electronic components, are anticipated. The eco car battery technology is applied to hybrid, fuel cell and electric cars and directly affects the travelled distance, fuel economy and performance levels.
Consequently, Hyundai and Kia have also gained a stable, competent supplier of battery packs for eco cars and walk a step further in leading the global eco car market.
Meanwhile, as the market for eco cars is expected to grow little by little, Toyota, GM, Volkswagen, Honda and other global auto makers are cooperating with battery companies to increase their overall competitiveness in batteries and obtain a stable supply for the future.