There’s no battery shortage for the Hyundai IONIQ Electric

Hyundai IONIQ Electric simple and efficient powertrain

 

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?

 

 

More info:

http://www.greencarreports.com/news/1111113_demand-for-hyundai-ioniq-hybrid-electric-models-higher-than-expected-company-says

Pedro Lima

More than natural resources, are wasted human resources that bothers me the most. That's why I'm a strong advocate of a society based on cooperation, not competition, that helps every individual to reach his full potential so that he can contribute back to society. "From each according to his ability, to each according to his needs".

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6 Responses

  1. Nada says:

    I doubt 4,000 per month is enough…
    But to increase production quickly is not easy even if LG could give them unlimited batteries…
    There 1,000s and 1,000s of parts comimg from different places inwhich all need increased production and what if one part has a limited capacity due to the supliers other contracts…
    Who knows but I think there is a much larger market for the taking if the will is there…
    The will to make EVs is probably the real restraint…

  2. Blue497 says:

    My car has gone from 12 weeks delivery until over 6 months, that’s assuming it’s not delayed further.
    So, what’s the real reason?

    • Jonas Jovial says:

      Easy..they have zero interest in selling EVs

      • Pedro Lima says:

        While it’s true that their interest in electric cars is small now, it’s also true that automakers – like any other company – love to get good reviews of their products, and no other Hyundai car is getting as much praise as the IONIQ Electric. It’s hard not to like the most efficient car in the world that is also one of the safest.

        They’ll definitely start increasing production at a much faster rate as soon as they realize that the IONIQ Electric helps the whole brand by its positive halo effect.

        “The halo effect is a term used in marketing to explain the bias shown by customers toward certain products because of a favorable experience with other products made by the same manufacturer or maker.”

        The Toyota Prius had a similar positive halo effect for Toyota, which is now known for making very reliable cars (hybrids or not) because of it.

        Volkswagen, on the other hand is dealing with negative halo effect, because of their diesel models, the whole brand is now seen as not trust worthy, greedy and a danger for the Environment. This automaker, more than any other really needs a good and affordable electric car that becomes popular and have a positive halo effect. I guess they are completely unaware of Marketing basics to know this obvious thing and keep fighting EVs instead of embracing them.

  3. Luca Riffer says:

    If Hyundai launched the PHEV Ioniq in North America right now, they would sell >4,000/month of this model alone . . huge pent-up demand for PHEV’s which allow an urban family to own just one car . . all-electric driving around town, plus a range of >500km for business or family trips further afield. Yes, it is duplicative in a PHEV to lug both batteries AND ICE around all the time, but don’t forget the extra weight of batteries needed to extend range from PHEV’s 50km (10 kWh) to EV’s 500km (70 kWh) is considerable . . I prefer the balanced mix a PHEV offers.

  4. Leafer says:

    This car will dissapear in the dust of insignificant EVs like the Kia SOul EV, they have no interest in selling it.

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