This alliance will provide Hyundai and Kia with a strong local supply chain in South Korea.
Components sourced from these companies will mostly be used in electric and autonomous vehicles.
This could help Hyundai Motor Group become a global leader in the EV market.
Hyundai Motor Group has formed an alliance with a number of key South Korean suppliers in order to gain better control over its supply chain.
By working with LG, Samsung, and SK, Hyundai hopes to benefit from lower costs, shorter delivery times, and better communication with its suppliers.
In this partnership, SK will supply the batteries while Samsung will take care of the semiconductors needed for autonomous driving capabilities, and LG will develop the OLED instrument panels.
This could help Hyundai and Kia become leaders in both the electric and autonomous vehicle fields by allowing them to lower their prices while offering more advanced technologies to buyers.
Another advantage of working closely with its suppliers for the automaker is the possibility to avoid a future supply chain crisis by making sure semiconductors and other necessary components continue to be directed toward its factories even if other industries become more attractive to Samsung or LG.
While the benefits of this alliance for Hyundai Motor Group are easy to see, Samsung, SK, and LG will also see positive impacts provided that Hyundai and Kia electric vehicles continue to be popular on the global market.
All of these companies have already announced their commitment to the advancement of electric vehicles and they aim to become leaders of their own respective sector.
For example, Samsung’s battery division is already one of the largest manufacturers of EV batteries in the world thanks to existing partnerships with other automakers such as Volkswagen and Audi.