Battery Shortage A Problem For Hyundai IONIQ Electric

MAY 8 2018 BY MARK KANE 24

Hyundai was hit by a lithium-ion battery shortage for its IONIQ Electric cars, which interrupts production and global sales.

The South Korean manufacturer informed its customers in Canada about the constraints and announced the end of 2018 model year sales. At the same time, it’s opening pre-orders for the 2019 model year (expected from July on).

News comes from Green Car Reports, which later discovered the problem in California too.

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Hyundai IONIQ Electric

“Hyundai Canada informed dealers that:

“Due to a temporary global battery supply shortage, the sold order entry system for 18MY Ioniq EV will be closed effective immediately. The 19MY Ioniq EV will be opened at the same time  to allow for pre-sale of 19My Ioniq EV, with deliveries beginning in July.”

The Bulletin Summary notes that:

  • Sold orders for 18MY Ioniq EV’s [sic] will be closed effective immediately due to a global battery supply shortage.
  • Available inventory may not be sufficient to fill all outstanding 18MY sold orders. Your regional office will inform you if any of your orders are affected. These customers will be give the option to convert to 19MY under the same sales program terms (rate and cash discount, if applicable)
  • 2019MY Ioniq EV sold orders will be opened to allow for pre-sale for the new model year. “

While so many complaints fell on Tesla due to its Model 3 production ramp-up (now one of the best selling all-electric cars in the world), we are surprised that a company as big as Hyundai notes troubles at level of barely 3,000 combined sales of the BEV and PHEV versions a month.

The battery pack in a Tesla Model 3 is also three-times bigger than in the all-electric IONIQ.

In the first quarter, Hyundai sold 5,527 IONIQ Electric and 3,050 IONIQ Plug-In Hybrids globally.

The problem with batteries for IONIQ Electric doesn’t lead us to believe the Kona Electric will be a volume car now either.

Hyundai IONIQ (Electric + Plug-In) Sales – March 2018

Source: Green Car Reports

Categories: Hyundai

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24 Comments on "Battery Shortage A Problem For Hyundai IONIQ Electric"

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Arpe

Any words on whether the MY2019 Ioniq will get a new battery?
The Ioniq would be a great EV with a 39 kWh or 60 kWh like the Hyundai Kona 🙂

Brandon

I know I remember reading that at some point, and sure enough, here’s the article:
https://insideevs.com/200-mile-hyundai-ioniq-electric-coming-in-2018/

Byung-ki, of Hyundai, said this:
“124 is not enough, and we have a plan to extend that to more than 200 by 2018.”

Seems like this year will see that 200 mile range Ioniq. They have to keep up with the LEAF you know….

Dan

Sounds like they didn’t order enough.

R.S

This has nothing to do with Hyundai’s size, or even the physical size of the battery packs. They didn’t order enough, so they have problems now.

Hyundai has put out very conservative sales targets and apparently they also gave them to their battery supplier. Now they suffer the consequences.

Battery production can be ramped up as high as needed, like every other part of the vehicle. But the supplier doesn’t just install unused production capacity for fun (unless they produce in China).

But if you only have one car and suddenly much more people want one, then there is no way to make those batteries appear out of thin air.

Prad Bitt

Lame pretext. COMPLIANCE CAR! Meaning that Hyundai actually committed to exactly as many as it needed for their financials.

John Doe

I don’t think so. Then they would not have made it so well, so integrated and efficient.
With so few choise in EVs, they could slap some cheap parts together and still be able to sell it.
Almost all cheap(ish) EVs have a production that is close to their max production.
I do find it strange they have not ordered enough batteries. Do they sell it too cheap? Low profit.

Steven

Or, just enough to say “Hey look, we’re doing it.”

Dan

Sounds like they didn’t order enough.

S'toon

There’s been reports in the past couple of years that Hyundai has been astonished at the demand for the Ioniq. They were operating under the assumption that there was no demand for BEVs, and what people were REALLY wanting was HFCVs.

From what I’ve read they still haven’t clued in to the fact that NOBODY wants HFCVs, and there is a large demand for BEVs. They’re still doubling down on the HFC development.

G2

Saska’toon?

Will

They are following the wrong crowd. They should be following Tesla and GM instead of Toyota

menorman

I wouldn’t call them “doubling down” on HFCVs, but more like “keeping their options open”.

Prad Bitt

No demand? lol! “According to a recent AAA survey, 20% of American car buyers stated that they are likely to choose an electric car when they purchase their next vehicle. The current figures are up 5% from 2017, when only 15% of respondents to AAA’s survey stated that their next vehicle would likely be an electric car. “

G2

There is a lot of talk about other brands coming along and eating Tesla’s lunch but this is where the difference comes into sharp focus; battery production. Jag; GM; BMW; MB; Hyundai; Kia; etc do not control their access to battery production and thus end up producing ‘compliance car’ levels of car production i.e. 20K to 35K annually.
Tesla was very smart to focus on battery production with their in-house partner Panasonic, and thus produced 100K+ cars last year and may well do 200K this year.

Mil

No s**t there’s a battery shortage. Tesla has been investing into batteries for years now (Gigafactory). All the other car manufacturers sat on their hands saying “we have money, we can pivot in a second if we choose to do EVs”.

If you’re slow to innovate, then you’re likely to fail. Maybe Hyundai may survive, but there’s other car manufacturers who have still not pivoted and by the time they realise, it’ll be too late for them to pivot.

Will

Kona is a compliance car from the start. Its all about selling the santa fe and Tucson

abacus

I don’t think Hyundai takes EV and PHEV seriously. They’ve had the Sonata PHEV since 2 years ago. Today the car is still priced higher than the Honda Clarity, has less EV range, and of course goes nowhere.

Murrysville EV

I guess I can give up on the Niro EV. If it’s a compliance car, I can’t buy it anyway. But if Hyundai was too stupid to source sufficient battery supply, I can’t buy it for that reason, also.

Paul Smith

Not a matter of stupid. They are just tentative entering a new market. Now I think we will see an increased focus.

The Panda

Reckon they a prioritising batteries for the Kona, which will probably sell way better than the Ioniq

Magnus H

Wasn’t the production target for Kona around 20 K/year?

DerekH

Please be concise when combining the words battery and shortage.

Sch

In Europe there is waiting time for Ioniq EV of around 9 months already for the last year.

SJC

“Hyundai originally ordered 6,000 to 7,000 batteries from supplier LG Chem for installation in versions of the Ioniq.”
– Hybridcars