Samsung SDI said it had signed a long term deal to supply electric vehicle (EV) batteries to Hyundai Motor, the company’s first battery supply contract with the automaker.
The battery maker signed a deal to supply prismatic batteries over seven years between 2026 and 3032, for vehicles produced in Europe.
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Hyundai last year said it planned to produce EVs for Europe at its 350,000 units a year plant in Nosovice, Czech Republic.
It also has a factory in Turkey.
The deal, involving Samsung SDI’s forthcoming P6 sixth generation prismatic batteries, was seen as a major breakthrough as it offers the battery maker a significant opportunity to grow its global operations and compete more effectively with rivals LG Energy Solution and SK On which are Hyundai’s current domestic battery suppliers.
The company already has long term supply contracts with BMW and Volkswagen Group in Europe and with General Motors and Stellantis in North America.
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By GlobalDataEarlier this year, Hyundai Motor said it was targeting boosting its global EV sales to 2m units annually by 2030 which, along with Kia’s 1.6m/year target, would make the group one of the world’s leading EV manufacturers.
The deal, which comes after extensive collaboration between the two companies on next generation battery platforms would allow Hyundai to diversify its battery supply chain and offer prismatic batteries in its vehicles for the first time.
The P6 has a 91% nickel-high NCA cathode and Samsung SDI’s proprietary silicon based anode which, it claims, “maximises energy density to the highest level”. The cells will be supplied from the Samsung SDI plant in Hungary.
Samsung SDI CEO Yoon-ho Choi said in a statement: “We have taken the very first step forward with Hyundai which is leading the global automobile industry.
The supplier would expanding its long term collaboration with the automaker “by providing…. unrivalled technologies and supreme quality”.
