Hyundai and GM Sign MOU to Explore Collaboration on Vehicles, Supply Chain and Clean-Energy Technologies

On September 12, 2024, General Motors and Hyundai Motor Company announced signing an agreement to explore future collaboration across key strategic areas. GM and Hyundai will look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster. This is promising news, as incumbent OEMs have struggled to adjust to the fast-growing EV revolution.

Potential collaboration projects center on co-development and production of passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies. The two leading global OEMs also will review opportunities for combined sourcing in battery raw materials, steel and other areas.

The framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra. Barra said a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation.

“GM and Hyundai have complementary strengths and talented teams. Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” said Barra.

Hyundai and General Motors (GM) are positioned to capitalize on their shared flexibility and agility, which will enable both companies to jointly explore and expand their capabilities. After signing a non-binding Memorandum of Understanding (MoU), the two automotive giants will immediately begin assessing collaborative opportunities. This includes evaluating areas for potential partnerships and determining the path toward binding agreements that could formalize their cooperation.

“This partnership will enable Hyundai Motor and GM to evaluate opportunities to enhance competitiveness in key markets and vehicle segments, as well as drive cost efficiencies and provide stronger customer value through our combined expertise and innovative technologies,” said Chung.

The MoU marks the starting point for detailed discussions around co-developing technologies, sourcing materials, and advancing clean-energy solutions, with the goal of creating efficiencies and delivering innovative vehicles to the market faster.

Samsung SDI, GM Finalize Agreement to Establish EV Battery Joint Venture in the U.S.

This news came on the heels of a historic agreement GM signed with Samsung SDI for EV batteries. On August 28, 2024, Samsung SDI announced the completion and signing of an agreement with General Motors to establish a joint venture focused on supplying electric vehicle (EV) batteries in the United States.

A new battery manufacturing plant in New Carlisle, Indiana, will be dedicated to producing nickel-cobalt-aluminum (NCA)-based high-performance prismatic batteries, tailored for General Motors’ (GM) upcoming electric vehicles. These batteries, supplied by Samsung SDI, are renowned for their high energy density, which significantly enhances driving range, and their robust safety features, including a metallic exterior and an advanced venting system to ensure reliability.

This joint venture will also enable Samsung SDI to strengthen its foothold in the growing North American EV market, expanding its customer base by offering high-quality prismatic batteries. These batteries will play a critical role in powering GM’s future EVs, combining improved safety with top-tier performance.

The joint venture will be located in New Carlisle, Indiana, on a 680-acre site. This new facility is expected to create over 1,600 much-needed American jobs, providing a substantial boost to the local economy, as another example of how the EV industry is making great progress in stimulating the US economy.

GM and Hyundai Destined for EV Leadership

Through GM’s agreement with Samsung SDI, and this week’s signing of a MOU with Hyundai, GM is positioning itself as an EV market leader. GM’s brand, Chevrolet, is due to release two highly anticipated low-cost EVs soon to the American market, the 2025 Bolt and the Equinox base 1LT model slated for later in 2024. Both companies have made bold investments in EVs over the last few years, showing a strong commitment to a healthy environment.