South Korea’s auto giant Hyundai Motor Group has launched a dedicated unit to develop its own electric vehicle batteries, amid growing concerns it could fall behind after Chinese EV maker BYD unveiled a breakthrough battery capable of delivering over 400 kilometers of range with just a five-minute charge.

Hyundai created the B Task Force (TFT) under its manufacturing division on April 7. The automaker says the goal is to build an integrated system to strengthen long-term battery competitiveness. But sources say the new team’s main role is to lead in-house battery development and boost technology.

The left photo shows Hyundai Chairman Chung Eui-sun (left) and LG Group Chairman Koo Kwang-mo shaking hands at LG Chem’s Ochang plant in Cheongju, North Chungcheong Province. In the right photo, Chung (right) and SK Group Chairman Chey Tae-won shake hands at SK On’s battery plant in Seosan, South Chungcheong Province. /Courtesy of Hyundai
The left photo shows Hyundai Chairman Chung Eui-sun (left) and LG Group Chairman Koo Kwang-mo shaking hands at LG Chem’s Ochang plant in Cheongju, North Chungcheong Province. In the right photo, Chung (right) and SK Group Chairman Chey Tae-won shake hands at SK On’s battery plant in Seosan, South Chungcheong Province. /Courtesy of Hyundai

The B TFT is staffed with many of Hyundai Motor Group’s top battery experts. It is led by Executive Vice President Jung Jun-cheul, head of manufacturing. Key figures include Senior Vice President Kim Chang-hwan, who oversees EV energy solutions, Choi Jae-hoon, head of battery development, as well as Lee Woo-sung (electrification energy solutions), Seo Jung-hoon (battery design), and Kim Dong-geon (battery cell development).

Hyundai and affiliate Kia currently source EV batteries from external suppliers such as LG Energy Solution and SK On. While the group does have an internal battery development unit, its role so far has been limited to working with partners to adapt external products for use in finished vehicles.

Some models, like Hyundai’s Kona Electric and Casper Electric, and Kia’s EV3, are already equipped with batteries co-developed by Hyundai Motor Group and LG Energy Solution. The two companies launched a joint battery cell venture, HLI Green Power, in Indonesia last July.

Many in the industry see Hyundai’s move as a response to growing urgency after BYD unveiled its latest fast-charging battery technology last month. BYD, which began as a battery maker, has since expanded into full-scale EV production and is now reshaping the global market.

BYD Chairman Wang Chuanfu presents new charging technology at the company’s Shenzhen headquarters in China on March 17, in this photo from the BYD X account.

BYD Chairman Wang Chuanfu announced on March 17 at the company’s Shenzhen headquarters that it had developed a “Super e-Platform” capable of delivering 400 kilometers of range with just five minutes of charging. The breakthrough puts BYD well ahead of global rivals, as Tesla’s Supercharger provides 320 kilometers after 15 minutes, while Mercedes-Benz’s latest system delivers 325 kilometers with a 10-minute charge.

News that BYD has developed a game-changing technology for the global electric vehicle market sent shockwaves through the auto industry. The day after the announcement, Tesla’s stock dropped by 5.3% on the New York Stock Exchange.

In-house battery development allows automakers to cut procurement costs and lower EV prices. BYD, which recently overtook Tesla as the world’s top EV seller, has gained ground by offering affordable models built on its own battery technology.

“If you rely on outside suppliers, there’s a limit to how much you can bring prices down,” said an industry insider. “That’s why companies like Mercedes-Benz and Hyundai are now betting big on internalizing battery technology.”