Samsung SDI has officially signed a landmark agreement with Hyundai Motor for the supply of electric vehicle (EV) batteries, marking a significant advancement in the automotive industry. This battery deal signifies Samsung SDI’s first-ever supply contract of batteries with Hyundai, enhancing its competitive positioning against major industry rivals like LG Energy Solution and SK On, Hyundai’s existing battery suppliers.
The comprehensive deal involves the supply of Samsung SDI’s innovative P6 sixth-generation prismatic batteries over seven years, from 2026 to 3032. These batteries will be integral components of vehicles manufactured for the European market, aligning with Hyundai’s robust manufacturing strategy on the continent. Hyundai has established a substantial manufacturing presence in Europe, with a key plant in Nosovice, Czech Republic, having an annual production capacity of 350,000 units, complemented by an additional factory in Turkey.
Samsung SDI’s P6 batteries represent a significant technological breakthrough, equipped with a 91% nickel-high NCA cathode and a unique silicon-based anode, ensuring maximal energy density. Production and supply of these batteries will be facilitated through Samsung SDI’s dedicated plant located in Hungary.
Hyundai aims to capitalize on this strategic partnership to enhance and diversify its EV battery supply chain. The integration of prismatic batteries in Hyundai’s vehicles underscores a dedicated focus on innovation and technological enhancement within its automotive offerings.
With a focused strategy, Hyundai aims to escalate its global EV sales, setting a target of two million units annually by 2030. In collaboration with Kia, with a sales target of 1.6 million units per year, the alliance aims to assert a dominant position within the global EV market.
Samsung SDI’s CEO, Yoon-ho Choi, highlighted the significance of the agreement, emphasizing its role as a foundational step in fostering a fruitful partnership with Hyundai. The emphasis remains on leveraging this partnership to deliver unparalleled technological contributions to the automotive industry, ensuring a sustained trajectory of innovation and quality.
This partnership marks a decisive move within the automotive industry, heralding a future enriched with technological advancements and strategic collaborations aimed at elevating the global EV market.
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