Hyundai Motor has selected SK Innovation and CATL as battery suppliers for its “third batch” of electric vehicles based on the all-new E-GMP platform to be launched after 2023, according to the latest reports from South Korea.

LG Energy Solution (LG Chem) has not been named as the supplier of the third batch. However, the company will supply batteries through its joint venture with Hyundai to be established in Indonesia, sources familiar with the situation said. These batteries will be used in the Hyundai IONIQ 7.

At the moment, the suppliers of batteries for Hyundai electric vehicles on the E-GMP platform are:

First batch: SK Innovation
Second batch: CATL
Third batch: SK Innovation and CATL
CATL will supply batteries for two of the three models Hyundai plans to launch after 2023.

While SK Innovation is Hyundai’s regular supplier, CATL is a new supplier chosen for several reasons – intent to enter the Chinese market and attractive pricing. CATL reportedly offers its batteries at less than $100 per kWh. According to Bloomberg NEF, this is below the average market price of $135 per kW⋅h.

Hyundai’s recall of electric cars linked to LG Energy Solution batteries and SK Innovation’s ban in the U.S. clearly show how important it is to diversify risk and choose multiple partners.

Recall that Hyundai recently introduced the first model in the new IONIQ brand lineup on the E-GMP platform, the IONIQ 5 electric crossover.