The battle for control of Battery Management Systems (BMS) â the crucial "brains" of electric vehicle (EV) batteries â is intensifying. This sophisticated hardware and software monitors and controls individual battery cells, playing a vital role in preventing potentially catastrophic fires. While car manufacturers have traditionally dominated BMS development, integrating their own systems into battery modules, a shift is underway, driven by recent EV fire incidents in South Korea and the ambition of battery suppliers.
Leading the charge is LG Energy Solution, a major battery manufacturer, which is leveraging its advanced battery diagnostic tools to muscle into the safety solutions market. These tools, initially provided free to ten automakers including Hyundai, now represent a significant opportunity. LG is now actively negotiating service fees for its upgraded software, utilising artificial intelligence and cloud technology. This updated system goes beyond previous capabilities, analysing battery degradation, predicting lifespan, and offering solutions tailored to software-defined vehicles.
An unnamed industry source, familiar with the negotiations between LG Energy Solution and Hyundai Motor Group, highlighted LG's technological advantage. "With its extensive experience in battery production, LG's battery diagnostic tool is far more advanced than Hyundai's BMS technology," the source stated, citing LG's impressive patent portfolio: 5,475 BMS-related patents filed between 2018 and 2022, the highest among Korean battery firms. This contrasts sharply with Hyundai's capabilities, raising questions about the extent of independent technological advancement within the automaker. The source further suggested that battery companies are not only capable of providing superior diagnostic tools but could also contribute significantly to the development of more advanced BMS software overall. Samsung SDI, another major player with 5,215 patents filed during the same period, is further bolstering this trend by developing a next-generation battery pack with integrated BMS hardware, though production details remain undisclosed.
However, even with these technological leaps, battery makers face significant hurdles. Achieving fault detection rates exceeding 90% remains challenging, largely due to the reluctance of car manufacturers, like Hyundai, to share comprehensive BMS data. This data, crucial for understanding how factors such as temperature and driving styles affect battery performance, is typically gathered through limited testing and post-mortem analysis of EVs equipped with their batteries. The source explained, "To better understand how conditions like temperature and driving modes affect batteries, we need more field data from EVs."
Hyundai's reluctance to share its data stems from concerns about potential "privacy violations" for car owners, a claim industry experts contest. The real issue, according to these experts, is the considerable profitability linked to controlling this valuable data. Lee Hang-koo, head of the Jeonbuk Institute of Automotive Convergence Technology, drew a parallel with Tesla's autonomous driving ambitions, stating, "Automakers, including Hyundai, do not outsource the development of their core technologies â BMS is one of them." He further explained that Hyundai likely envisions leveraging BMS data to create lucrative subscription-based software update services, making data sharing a direct surrender of a potentially substantial revenue stream.
Hyundai downplays the growing influence of battery manufacturers in the BMS space, arguing that their contributions are limited to battery monitoring. While acknowledging the confidential nature of their deal with LG Energy Solution, a Hyundai spokesperson emphasised their BMS's broader scope, encompassing the impact of battery issues on the vehicle's overall structure and components. Hyundai is nonetheless upgrading its BMS in three stages, focusing on enhanced voltage, current, and temperature monitoring, short-circuit detection, and driver alerts.
However, recent EV fires are placing increased pressure on Hyundai. Professor Lee Ho-geun of Daeduk University noted that public concerns surrounding fire safety could ultimately lead Hyundai to adopt LG's diagnostic software. "The public doesn't care who controls the BMS; they just want their electric cars to be safe," he stated. This sentiment is echoed by Lee Hang-koo, who suggests that Hyundai's previous refusal to share BMS data with the Ministry of Land, Infrastructure and Transport may now face stronger opposition.
The ongoing negotiations between LG Energy Solution and Hyundai represent a significant turning point. This move towards paid services signals a broader ambition by battery manufacturers to establish a stronger foothold in the BMS sector, driven by both technological advancements and a desire to mitigate the considerable financial liabilities associated with EV fires. The future may see a shift in the narrative, much like Intel's "Intel Inside" campaign, where a focus on battery safety could lead to a similar brand recognition and trust in the future of EVs.
