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Samsung SDI Co., Ltd. announced it has signed a battery supply deal with Hyundai Motor. The South Korean battery and electronic materials manufacturer said it will deliver electric vehicle (EV) batteries to the automaker for seven straight years starting in 2026.
Samsung SDI will supply prismatic batteries P6, which is the sixth generation already, to Hyundai Motor, and these will be installed on its new range of electric vehicles. These will be manufactured at the battery maker's production plant located in Hungary.
Hyundai Motor's EVs that will have the Samsung SDI battery are set to debut in the European market from the year 2026 to 2032. Hankyung News reported that the total units of batteries involved in the deal are enough for 500,000 electric vehicles.
First Partnership Deal
According to Reuters, this is the first time that Samsung SDI and Hyundai Motor are collaborating on EV battery supply. The former is already supplying its products to Stellantis, General Motors Co., BMW, and other foreign car brands, and the latest deal with a local car maker is a good development for its market. The financial aspect of the deal was not disclosed.
"The latest supply deal marks the first-ever partnership between Samsung and Hyundai Motor Group in the field of electric vehicle batteries," the battery manufacturing firm said in a statement.
Possible Expansion of Business Cooperation
With the latest deal, Samsung SDI just added Hyundai Motor to its list of major customers. This deal serves as additional growth momentum for the company in line with its expansion efforts.
The collaboration is beneficial for Hyundai Motor, too, because this will allow it to diversify battery form factors since the agreement is for prismatic batteries. This gives the automaker the opportunity to increase the adoption of prismatic batteries for its units. In any case, the two companies are planning to carry on with their partnership and expand it to research and development for next-generation battery platforms.
"We have taken the very first step forward with Hyundai Motor Company that is leading the global automobile industry," Samsung SDI's president and chief executive officer, Choi Yunho, said in a press release. "The company will make best efforts to help Hyundai Motor reinforce its global market leadership by expanding long-term partnership with the automaker by providing the customer with unrivaled technologies and supreme quality."
Photo by: Samsung Press Center
