Hyundai Halts Ioniq Production Due to Battery Shortage

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【Summary】Recently, Korean automaker Hyundai sent a bulletin to its Canadian dealers, informing them of Ioniq back orders. The company has stopped production of the compact electric car due to a shortage of lithium-ion batteries.

Mia Bevacqua    Jun 19, 2018 3:15 PM PT
Hyundai Halts Ioniq Production Due to Battery Shortage

If you had your eye on a new Hyundai Ioniq, you might be out of luck. At least for now. The Hyundai Ioniq Electric 5-door compact is powered by a 88 kW motor and a 28 kWh lithium-ion battery. Recently, Hyundai announced sales of the EV would be put on hold due to a battery shortage.

Hyundai Canada issues bulletin regarding battery shortage 

To inform dealers, Hyundai Canada sent out a bulletin entitled, "18My Ioniq EV Short-Term Production Shortage".  

The main takeaway from the article is as follows:

"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 goes on to note 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.

Lithium-ion batteries are scarce worldwide 

Although the memo initially went out to Canadian dealers, the battery shortage is worldwide. An account from Green Car Reports says Hyundai admitted the company is facing a global battery shortage. This will affect the availability of the Ioniq in California, which is the only place the car is presently sold in the U.S. 

Currently, the Ioniq has an estimated range of 124 miles. Hyundai hoped to release a 200-mile long-range version with a bigger battery. But with the current shortage, those plans will likely be put on hold. Furthermore, the lack of batteries may affect production of the upcoming Kona electric. The electrified SUV was slated for release later this year, sporting a 64 kWh battery and a 238-mile range.

Hyundai isn't alone. The demand for lithium-ion batteries has skyrocketed with the proliferation of electric vehicles. Whether supply will be able to keep up is questionable. 

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