LG Energy Solution debuts new battery-based EV financing

South Korea’s top battery maker LG Energy Solution said Wednesday it is partnering with financial service provider Hyundai Capital to launch a new financing product for electric vehicle drivers called Battery Lifecare, offering incentives based on battery life.

Battery Lifecare, an industry first, is designed to benefit those leasing or renting EVs from Hyundai Motor Group, including Hyundai’s Ioniq 5 and Ioniq 6, Kia's EV6 and the Genesis GV60. By offering better trade-in value based on the battery's overall health, the program helps to reduce monthly payment burdens for consumers who maintain their vehicle batteries well.

Conventionally, the value of a vehicle at the end of a lease or rental contract has been determined based on how many kilometers it has been driven, with no exception for EVs. Battery Lifecare aims to shift this metric by focusing on the overall health and performance of the battery.

For instance, leasing a Hyundai Ioniq 6 worth 50 million won ($36,800) for 36 months or 40,000 kilometers could result in a monthly savings of approximately 30,000 won compared to conventional financing options, the company said. This would total savings of about 1.08 million won over the contract period.

The evaluation utilizes LG Energy Solution's cloud-based battery management technology, providing real-time data on battery condition, driving habits and charging patterns through self-diagnostic tools.

In addition to lower monthly payments, Battery Lifecare offers a rewards system. Customers receive "My Reward Score" based on battery health and distance traveled. Meeting or exceeding the score by the end of the leasing term could earn customers a reward of 300,000 won upon the vehicle's return.

Initially, Hyundai Capital will offer Battery Lifecare to corporate clients, with availability extending to individual consumers starting from Nov. 12.

"This partnership leverages LG Energy Solutions' expertise in battery diagnostics and Hyundai Capital's strength in automotive finance to introduce new, customer-focused solutions in the Battery as a Service ecosystem," said Kim Tae-young, head of LG Energy Solution's service business development task team.