Reports indicate that “Samsung SDI Company,” a battery manufacturer under South Korea’s Samsung Group, announced on Monday (October 23) its commitment to supply EV Batteries to Hyundai Motor Group within seven years, starting from 2026. This marks the first time these two prominent Korean companies have entered into a battery supply contract.
First Battery Supply Deal Between the Two Korean Giants
On the same day, Samsung SDI declared in a statement that this supply agreement also signifies the initial collaboration between Samsung Group and Hyundai Motor Group in the field of electric vehicle power batteries.
Notably, Samsung SDI’s power batteries have previously garnered attention from numerous renowned automobile companies, including General Motors of the United States, BMW of Germany, and Strantis of the United States (a result of the merger between PSA Group and Fiat Chrysler).
The company clarified that the supply contract with Hyundai Motor Group will span from 2026 to 2032, focusing primarily on electric vehicles intended for the European market. Samsung SDI’s factory in Hungary will produce cylindrical power batteries for Hyundai vehicles in Europe.
While the specific size of this supply contract remains undisclosed, a well-informed source informed the press that the power batteries supplied by Samsung SDI over the next seven years can meet the demands of 500,000 Hyundai Motor electric vehicles.
Earlier this month, Samsung SDI disclosed its plans to collaborate with the American automobile manufacturing giant Strantis to establish a power battery factory in Indiana, with a total investment of up to 2.7 trillion won (equivalent to US$2 billion). The power battery factory is scheduled to complete and commence production in 2027.
As a result of this news, Samsung SDI’s stock price experienced a modest increase of 0.3% during the intraday trading session of the Korean stock market that day, with its stock performance slightly outperforming the Korean stock market index.
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