Samsung SDI, a major player in the electric vehicle (EV) battery market, has announced a groundbreaking partnership with Hyundai Motor, stating that it will supply the automaker with EV batteries for a period of seven years commencing in 2026. This momentous agreement marks the first-ever battery supply deal between the two South Korean giants.
In a statement, Samsung SDI expressed its enthusiasm for the collaboration, noting, “The latest supply deal marks the first-ever partnership between Samsung and Hyundai Motor Group in the field of electric vehicle batteries.”
While the exact size of the EV battery deal remains undisclosed, Samsung SDI is expected to provide prismatic batteries produced at its manufacturing facility in Hungary. These batteries will be destined for Hyundai Motor’s EV models targeting the European market from 2026 through 2032.
An industry insider, speaking to Reuters on the condition of anonymity, estimated that Samsung SDI’s battery supply could power approximately 500,000 EVs over the course of the seven-year agreement.
This partnership comes at a time when the global automotive industry is increasingly shifting towards electrification. Hyundai Motor, like many other major automakers, is making substantial investments in EV technology to meet growing demand for environmentally friendly transportation options.
Earlier this month, Samsung SDI revealed its plans to invest 2.7 trillion won (approximately $2 billion) in the construction of a second joint EV battery plant with Stellantis in the U.S. state of Indiana. The new facility aims to commence production in 2027, underlining Samsung SDI’s commitment to supporting the EV market’s expansion in North America, Reuters news report said.
Samsung SDI recently posted KRW 5.84 trillion in revenue and KRW 450.2 billion in the operating profit for the second quarter that ended June 30, 2023.
As the automotive industry continues to embrace electric mobility, partnerships like the one between Samsung SDI and Hyundai Motor highlight the importance of collaboration between established and emerging leaders in the sector.