Hyundai

Samsung SDI partners with Hyundai for EV battery supply deal

South Korea’s Samsung SDI, a battery manufacturer that supplies batteries to companies like General Motors, Stellantis, and BMW, will partner with Hyundai Motor Group for seven years to supply electric vehicle (EV) batteries. Commencing from 2026, the agreement marks the first-ever battery supply collaboration between two companies.

The size of the deal is still not revealed but it is estimated that Samsung SDI will provide batteries that are capable of powering approximately 500,000 EVs over the next seven years.

Samsung will provide Hyundai Motor with rechargeable batteries called ‘Prismatic Battery’. These batteries are manufactured at Samsung’s factory located in Hungary. These batteries will be utilized in Hyundai's EVs targeting the European market from 2026 through 2032. This collaboration implies the growing importance of EVs in the automotive industry.

Samsung SDI is leveraging 2.7 trillion won, which is approximately $2.74 billion to establish a new electric vehicle battery plant. This will be done with the collaboration with Stellantis. This new facility is expected to commence production in 2027.

The news of the collaboration had a positive impact on the company’s stock which has risen up by 0.3%. While Samsung SDI’s stock price increased, the broader market experienced a slight decline at the time of announcement as represented by the KOSPI index.