Hyundai ventures into the electric vehicle charging station business
One of the world's leading automotive companies, Hyundai, is now stepping into the electric vehicle charging station industry after electric cars.
Hyundai Motor Group is making strategic changes to their approach to electric vehicle (EV) charging. Instead of solely depending on external providers, they have decided to develop their own high-speed DC chargers. The launch is led by Hyundai Kefico Corp., a subsidiary primarily dealing with engine and transmission parts. The company is poised to introduce its Blue Plug-branded chargers that boast an impressive capability of 350 kilowatts.
Initially, Hyundai will utilize these proprietary chargers for the E-pit ultra-fast charging network in South Korea. Despite being launched in April 2021, the E-pit network is still in the early stages with 36 stations. This is a relatively small figure, especially when compared to Tesla's 106 Supercharging locations in the same country. The significant expense of acquiring chargers from external vendors has been a primary barrier to the expansion of the E-pit network.
Hyundai ventures into the electric vehicle charging station business
To overcome this challenge, Hyundai has chosen to manufacture its own chargers. Current industry data suggests that a fast charger costs an average of $113,000. By overseeing the complete manufacturing process, Hyundai aims to substantially reduce this figure. Although the company has yet to confirm if these chargers will be available for export, the strategy clearly mirrors Tesla's successful approach to in-house charger production.
However, Hyundai's decision might not be favorable news for the current E-pit suppliers such as SK Signet and EVSIS Co. It also reflects deeper changes in the company’s strategy towards electrification, emphasized by the recent dissolution of their partnership with Daeyoung Chaevi, a firm that previously managed E-pit systems and chargers.
All in all, Hyundai's choice to produce chargers in-house could be transformative. It not only promises to enhance the E-pit network but also strengthens their position in the competitive EV market. Given Hyundai's existing expertise in power electronics, they seem well-positioned to make a significant impact in the South Korean EV sector.
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