Hyundai Motor Group has announced the spinoff of three startups – Pitin, Madde, and Evacycle – from its in-house startup incubator program. This development is significant as it typically takes more than a year for startups to become independent entities, but these firms have demonstrated exceptional potential in the automotive and semiconductor industries in just nine months.
Pitin, one of the startups, has introduced a battery subscription service for commercial electric vehicles (EVs) such as taxis. This innovative service utilizes refurbished batteries and a battery swapping technology, enabling taxi drivers to replace used batteries quickly and affordably. Pitin also plans to launch an insurance and fast-charging service for commercial EV batteries.
Madde, another spinoff, specializes in the production of silicon carbide, a key material used in semiconductors. Traditional manufacturing processes for silicon carbide are time-consuming and expensive due to its fragility. However, Madde’s 3D printing technology makes the process more efficient and cost-effective. The company intends to expand its business into aerospace and small modular reactor parts.
Evacycle, the third startup, offers recycling solutions by extracting valuable materials, including lithium, nickel, and cobalt, from used batteries. This sector has limited competition due to slow technological development and low profitability. Hyundai recognizes Evacycle’s efforts in designing and manufacturing eco-friendly and safe equipment for black powder extraction. The company aims to cut prices, electricity usage, and production time by 50% compared to its current methods.
In a statement, Hyundai Motor Group highlighted its commitment to fostering innovation and creativity by nurturing a total of 76 in-house startup teams and spinning off 33 successful startups. The company encourages its staff and executives to generate innovative ideas and supports commercialization strategies.
Hyundai Motor Group has been running an in-house startup accelerator program called Venture Plaza since 2000, which was rebranded as the ZER01NE Company Builder in 2021. Initially focused on the automotive industry, the program now also supports small firms in other business sectors. Startups selected for the program receive up to 300 million won ($227,000) in funding and undergo an evaluation process to determine their eligibility for spinoff or incorporation as a new business within Hyundai. Furthermore, staff and executives participating in the startup initiatives have the opportunity to be rehired by the carmaker for up to three years after the spinoff.
As Hyundai Motor Group continues to support and invest in startups, their efforts in nurturing these innovative ventures are set to shape the future of the automotive and semiconductor industries. The spinoff of Pitin, Madde, and Evacycle demonstrates the company’s commitment to driving technological advancements and sustainability in these sectors.
