Hyundai Motor Taps Samsung SDI As EV Battery Supplier From 2026
On Monday, Samsung SDI, a South Korean battery producer entered into an important contract with Hyundai Motor. Under the terms of the agreement, Samsung SDI will supply all-electric vehicle (EV) batteries to Hyundai Motor for seven years, starting in 2026.
According to a statement from Samsung SDI, this innovative partnership is the first-ever agreement between Samsung and Hyundai Motor Group with reference to electric car batteries.
Samsung SDI intends to supply prismatic batteries made at its Hungarian manufacturing facility for Hyundai Motor's electric vehicles, primarily targeting the European market, from 2026 through 2032, while the specifics of the arrangement were not made public.
Industry insiders, cited by Reuters, speculate that Samsung SDI is poised to supply EV batteries capable of powering approximately 500,000 electric vehicles over the next seven years.
Moreover, Samsung SDI recently announced its intention to invest a substantial sum of 2.7 trillion won (equivalent to USD 2 billion) in the establishment of a second joint EV battery production facility, in collaboration with Stellantis, situated in the U.S. state of Indiana.
This new plant is slated to commence operations in 2027 and underscores Samsung SDI's commitment to expanding its presence in the EV battery market.
Financial markets responded positively to this news, with Samsung SDI's shares experiencing a 0.3 per cent increase in value, in contrast to the benchmark KOSPI index's marginal 0.1 per cent decline as of 0203 GMT.
