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 Hyundai Motor and Kia, South Korea's leading automotive companies, said on Thursday they have launched a joint project to develop cathode material technology for producing LFP (lithium iron phosphate) batteries for electric vehicles. 

The joint project, also involving Hyundai Steel Co. and Ecopro BM, aims to develop a technology for synthesising materials directly without using precursors during the manufacturing of LFP battery cathodes, reports Yonhap news agency.

Hyundai Motor and Kia, in collaboration with Hyundai Steel, plan to develop high-purity fine iron powder processing technology using recycled steel. Ecopro BM will utilise this to develop directly synthesised LFP cathode materials.

The project, supported by the Ministry of Trade, Industry and Energy, will run for four years, the automakers said. The companies' representatives held a meeting Wednesday to discuss future cooperation.

If the project is proven successful, LFP battery production could become more cost competitive, as currently most cathode precursors are produced in a few specific countries, leading to high import dependency.

The project could potentially enable the establishment of a stable domestic supply chain for raw materials for LFP batteries, reducing reliance on imports and enhancing supply chain security for the country, the companies said.

"Through this project, we hope to reduce reliance on foreign imports and internalise the necessary technologies, thereby enhancing the technological competitiveness of both the nation and Hyundai Motor Group," the automakers said.

Meanwhile, cumulative sales volume of Hyundai Motor is likely to exceed the 100 million-unit mark this month, industry projections showed.

According to the company data, Hyundai Motor's cumulative car sales from 1968 to the end of July totalled 99.66 million units. This includes 24.36 million units sold domestically and 75.3 million units sold overseas.

Achieving 100 million units in cumulative sales would mark a major milestone for the South Korean automaker, accomplished 56 years after the company first began selling the Cortina compact sedan, which was first produced at Hyundai's Ulsan plant in 1968.