Kia, Hyundai and LG Chem join hands to identify EV startups for investment

South Korean automakers Hyundai Motor Company and Kia Motors Corporation, along with LG Chem on Tuesday announced a global competition to identify up to 10 electric vehicle and battery startups for potential investment and collaboration.

New Energy Nexus, the international startup support organisation, will manage and facilitate the competition -- 'EV & Battery Challenge (EVBC)' -- the companies said in a joint statement.

The chosen startups will have the opportunity to work hand-in-hand with Hyundai, Kia, and LG Chem, to develop proof-of-concept projects while leveraging the sponsors' technical expertise, resources, and laboratories, they added.

"The global competition offers startups the opportunity to showcase their respective innovative technologies and unique business models. Through the EVBC, the three sponsors aim to identify and secure core technology capabilities that will bring more value to their customers," the statement said.

Applicants that pass the first review on business feasibility and technology will go through virtual interviews in October. Then, the finalists will attend a two-day workshop in November at the Hyundai CRADLE Silicon Valley office, the hub for Hyundai Motor Group's open innovation in the US. There, Hyundai, Kia, and LG Chem will be verifying the innovative technologies of the applicants.

"We are widening our collaboration with startups that have promising and innovative ideas. We look forward to working with various startups that will lead the global EV market and next-generation battery innovation through a joint program with LG Chem, which has world-class battery technology," Hyundai Motor Group President and Chief Innovation Officer Youngcho Chi said.

Myung-Hwan Kim, Chief Production and Procurement Officer and head of the battery research centre at LG Chem's Energy Solution Company said LG Chem is continuously striving to lead in battery technology development based on an open innovation approach.

"We will foster potential startups in partnership with Hyundai and Kia, and strengthen our capabilities in the EV sector," Kim added.

New Energy Nexus Chief Energy Officer Danny Kennedy said LG Chem and Hyundai Motor and Kia are leading the charge for better batteries and better mobility systems.

"Their joint effort to accelerate startups through the EV and Battery Challenge shows they are in it for the long game. We are proud to be working with such forward-thinking companies that are enabling a faster and cleaner energy transition," Kennedy added.

Last year, LG Chem had hosted 'The Battery Challenge' to discover innovative technologies in the battery business, and this year, it has partnered with Hyundai and Kia to create more synergy in the EV sector.