There’s no battery shortage for the Hyundai IONIQ Electric
Demand is higher than expected, but there is no battery shortage that prevent production increase.
Earlier this month, I wrote an article about the Hyundai IONIQ Electric production increase where I mentioned that at the same time Business Korea was reporting that the Hyundai IONIQ production was being held up by battery shortage. I also mentioned why I found it hard to believe…
Now Jim Trainor, Director of Communications at Hyundai Motor America confirmed to Green Car Reports what I suspected:
“We’ve seen nothing to indicate any shortage, I don’t know how that started; [Hyundai in Korea] can’t find anything to support it. We’re working to get more Hybrids and Electrics as both are proving quite popular.”
However, while there is no battery shortage, it’s true that is takes time for LG Chem to adjust production to Hyundai’s revised needs. Especially because the battery cell manufacturing process is complex and its ageing phase takes 2 to 4 weeks. Feel free to take a look at the interesting slide below (starting at page 19), if you want to learn more about the battery cell manufacturing process (its phases and how long it takes).
With that being said, getting more battery cells than what was initial agreed with LG Chem might take as long as one month, however this is not a catastrophic event as we might thought from reading the news about a battery shortage. In fact, this is great news, since ordering more battery cells can give Hyundai the advantage of negotiating a better deal (lower kWh price) with LG Chem.
To finalize, I think it won’t take much longer for Hyundai to revise its production goals for the Hyundai IONIQ Electric again. Even the latest production goal of 4.000 monthly units seems small for a great electric car that is sold worldwide.
What do you think? Will the production of 4.000 monthly units of the world’s most efficient car be enough to fulfill demand? Are you waiting for yours?