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Hyundai To Lease EV Batteries

To lower upfront ownership costs, Hyundai has inked a deal to lease electric vehicle batteries to a taxi company. It’s an ingenious solution for lowering ownership costs.

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Hyundai has inked a deal in South Korea where it will lease electric vehicle batteries to a taxi company. The new program will lower upfront ownership costs, which means more electric vehicles on the road.

There’s a reason electric vehicles are so much more expensive than cars with internal combustion engines: battery powertrains cost a lot more than gas powertrains. Leasing the batteries for your Hyundai EV just might be the solution.

Think about it. People lease expensive vehicles all the time at lower costs than straight out buying. At the end of a 39-month lease, one can either buy the car for a pre-determined amount or trade it in for the latest technology.

That’s what makes Hyundai’s move brilliant. Get the latest in battery technology for a monthly cost. When the lease is up either buy the battery (ok batteries) or swap them out for the latest technology. The latest technology should mean greater range and probably lower weight.

Hyundai EV charging time

LG Energy Solution will analyze safety and residual value by purchasing batteries after use. It will also install these batteries into energy storage system (ESS) units for fast-charging service and sell them to KST Mobility to utilize the chargers for its fleet of EV taxis.

Hyundai announced this enterprise will demonstrate and validate the safety of used EVs and allow all involved parties to find means to appraise residual value of used batteries. This is expected to encourage the reuse of EV batteries. The shared EV battery data will also allow other new business opportunities to be explored.

Hyundai continues its drive to be the affordable alternative to Tesla with the global announcement of its new Electric-Global Modular Platform (E-GMP), a dedicated battery electric vehicle (BEV) platform. The Korean automaker says the new platform gives it more flexibility and enhanced performance.

By 2025 Hyundai aims to sell 1 million electric vehicles globally. It took a giant step toward that goal with the reveal of a 10-vehicle EV lineup by 2022. Plus the Ioniq5 debuts later this week.

Hyundai continues its drive to be the affordable alternative to Tesla with the global announcement of its new Electric-Global Modular Platform (E-GMP), a dedicated battery electric vehicle (BEV) platform. The Korean automaker says the new platform gives it more flexibility and enhanced performance. This new platform gives Hyundai (as well as Kia) the ability to develop new electric vehicles at a faster rate to meet market demand.

Hyundai Ioniq 5 front fascia teaser

From 2021, the E-GMP will underpin a range of dedicated new BEVs, including Hyundai Motor Company’s IONIQ 5; Kia Motors Corporation’s first dedicated BEV to be revealed in 2021; and a series of other models.

Would you lease the batteries in your EV to save money? Just think. Regardless of the age of your electric vehicle, the batteries would always be under warranty. Comment below.

Keith Griffin covers Hyundai and Kia at Torque News. He has been writing continuously about cars since 2002. Keith used to be a researcher/writer for US News & World Report, as well as numerous car sites, including Carfax and Car Gurus, and a contributor to The Boston Globe. Most recently, Keith was the managing editor for American Business Media. Follow Keith at @indepthauto on Twitter, on @LinkedIn and on his Indepth Auto Facebook page.

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