Samsung SDI signs battery contract with Hyundai

Home > Industry Analysis > Content

【Summary】Samsung SDI has signed a long-term deal to supply electric vehicle (EV) batteries to Hyundai Motor, marking the battery maker's first contract with the automaker. The deal will involve the supply of prismatic batteries over seven years for vehicles produced in Europe. This agreement is seen as a breakthrough for Samsung SDI, allowing it to compete more effectively with rivals LG Energy Solution and SK On, which are Hyundai's current domestic battery suppliers.

FutureCar Staff Oct 24, 2023 6:28 AM PT

Samsung SDI signs battery contract with Hyundai

Samsung SDI has announced a long-term deal to supply electric vehicle (EV) batteries to Hyundai Motor, marking their first battery supply contract with the automaker. The agreement entails supplying prismatic batteries over a period of seven years, from 2026 to 3032, specifically for vehicles produced in Europe. This partnership is significant for Samsung SDI as it presents an opportunity to expand its global operations and compete more effectively with rivals LG Energy Solution and SK On, who are currently Hyundai's domestic battery suppliers.

Hyundai had previously revealed plans to manufacture EVs for the European market at its plant in Nosovice, Czech Republic, which has an annual production capacity of 350,000 units. Additionally, the company operates a factory in Turkey. The deal with Samsung SDI will involve the use of the battery maker's forthcoming P6 sixth-generation prismatic batteries.

Samsung SDI already has long-term supply contracts with major automakers such as BMW and Volkswagen Group in Europe, as well as General Motors and Stellantis in North America. These partnerships have further solidified the company's position in the global battery market.

Earlier this year, Hyundai Motor announced its target of increasing global EV sales to 2 million units annually by 2030. This ambitious goal, along with Kia's target of 1.6 million units per year, positions the Hyundai Motor Group as one of the leading manufacturers of electric vehicles worldwide.

The collaboration between Hyundai and Samsung SDI on next-generation battery platforms has paved the way for this supply agreement. By diversifying its battery supply chain and incorporating prismatic batteries into its vehicles, Hyundai will be able to offer enhanced options to its customers.

The P6 prismatic batteries from Samsung SDI feature a 91% nickel-high NCA cathode and the company's proprietary silicon-based anode. This combination is said to maximize energy density to the highest level. The cells will be manufactured at Samsung SDI's plant in Hungary.

Samsung SDI CEO Yoon-ho Choi expressed excitement about the collaboration with Hyundai, stating that the company is taking the first step forward with a leading player in the global automobile industry. He emphasized Samsung SDI's commitment to providing unrivaled technologies and supreme quality to further expand its collaboration with Hyundai.