The South Korean company is consolidating its efforts to strengthen the local flagship automaker’s position in the global electric vehicle market. An alliance between Samsung, SK and LG will be formed around Hyundai Motor Group to help the automaker develop competitive electric vehicles by leveraging each member’s best practices in the areas where they excel the most.
So Samsung’s semiconductor solutions will be used for autonomous driving systems, SK can become a supplier of traction batteries and LG – OLED information boards and many other electronic solutions. All this will be installed in electric vehicles from Hyundai and Kia (the brand is also owned by Hyundai). Hyundai, which has recently emerged as a major player in the electric vehicle market, is known for strengthening ties with local South Korean companies, which are believed to have the potential to have a significant impact on the local electric vehicle industry to have.
The formation of the alliance, which has one of the largest automotive groups in the world at its core, was accompanied by intensive investments in the automotive industry by Samsung, SK and LG. By doing so, the companies in the alliance hope to strengthen their competitiveness in the electric vehicle product markets. For example, Samsung invests heavily every year in the development and production of processors for automotive applications. In addition, Samsung Electro-Mechanics is also increasing investment in multilayer ceramic capacitors (MLCC) for electric vehicles.
LG divisions produce a range of electric vehicle products. LG produces display panels for displays, LG Innotek – camera modules, LG Magna – powertrains and LG Electronics – operating systems and infotainment systems. In addition, in the battery sector, LG Energy Solution, SK and Samsung SDI are among the world market leaders.
South Korean products are increasingly being bought outside of the “home market”. For example, Samsung Electronics’ infotainment systems are supplied by Audi and Volkswagen, and LG Display has been expanding its user base in the car market for several years and began supplying OLED solutions for Mercedes-Benz digital cockpits in 2021.
Participants anticipate that the alliance will grow stronger as competition intensifies in the global electric transport market. By working with local manufacturers, Hyundai can save significant logistics and other costs, among other things, and quickly organize face-to-face meetings with partners if necessary.