Samsung SDI, the South Korean battery manufacturer, has announced a groundbreaking partnership with Hyundai Motor, marking their maiden foray into electric vehicle (EV) battery supply.
The collaboration is set to span seven years, commencing in 2026, and is expected to have a significant impact on the EV market.
This historic agreement signifies the first-ever collaboration between Samsung and Hyundai Motor Group in the realm of electric vehicle batteries.
According to Samsung SDI, they will be supplying prismatic batteries produced at their facility in Hungary.
These batteries will be destined for Hyundai Motor’s electric vehicles intended for the European market between 2026 and 2032.
While the precise financial details of the partnership have not been disclosed, industry insiders suggest that Samsung SDI will provide EV batteries capable of powering approximately 500,000 electric vehicles over the course of the next seven years.
This collaboration will be instrumental in Hyundai Motor’s efforts to expand its presence in the European EV market, where demand for electric vehicles is steadily increasing.
Earlier this month, Samsung SDI unveiled plans to invest a substantial $2 billion (2.7 trillion won) to construct a second joint EV battery manufacturing facility with Stellantis in the United States, specifically in the state of Indiana.
This strategic move is aimed at bolstering production capabilities and is slated to commence operations in 2027.
This investment is a testament to Samsung SDI’s commitment to becoming a major player in the global EV battery industry.
Market response to this groundbreaking partnership has been positive, with Samsung SDI’s shares experiencing a 0.3% increase in trading, in contrast to the 0.1% decline seen in the benchmark KOSPI index.
This collaboration is poised to drive innovation and propel both companies into the forefront of the rapidly evolving electric vehicle market.