Samsung SDI to supply batteries for Hyundai EVs in Europe

Samsung SDI will supply battery materials for Hyundai Motor’s new electric vehicle lineups bound for the European market for seven years starting 2026, marking the first battery deal between the two companies.

Samsung SDI's EV battery plant in Hungary. [SAMSUNG SDI]

Samsung SDI will supply battery cells for Hyundai Motor’s new electric vehicle lineups bound for the European market for seven years starting 2026, marking the first battery deal between the two companies.

The battery-making affiliate 19.58 percent owned by Samsung Electronics will provide the sixth edition of Samsung SDI’s prismatic battery which is currently in development, dubbed “P6.”

The amount of the supply is capable of powering 500,000 EVs.

The partnership was born out of the meetings between Samsung Electronics Executive Chairman Lee Jae-yong and Hyundai Motor Executive Chair Euisun Chung in May and July of 2020 to discuss business partnerships in the automotive industry.

Their discussions received much spotlight as it marked the first time for the two conglomerate heads to have met with the purpose of business cooperation.

P6 is the battery maker’s newest high-nickel NCA — nickel, cobalt, aluminum-based — prismatic battery. Samsung SDI improved the P6’s energy density by more than 10 percent compared to the previous P5 by enhancing the nickel content in its cathode to 91 percent and adopting silicon-carbon-nanocomposite material technology.

The product features ultrafast charging as well, that can be recharged to 80 percent in a 10 minute-span.

Mass production will begin next year.

The products will be manufactured at Samsung SDI’s Hungary plant and supplied to Hyundai Motor’s production facilities in Europe.

It is anticipated that the partnership would allow the automaker to diversify battery form factors to adopt prismatic batteries to its electric vehicles.

Hyundai Motor has mainly utilized pouch-type batteries produced by SK Innovation and LG Energy Solution, while prismatic batteries were supplied by China's CATL.

The two companies plan to continue their partnership to research and develop next-generation batteries.

“We have taken the very first step forward with Hyundai Motor Company that is leading the global automobile industry,” said Samsung SDI’s President and CEO Yoon-ho Choi in a statement. “The company will make best efforts to help Hyundai Motor reinforce its global market leadership by expanding long-term partnership with the automaker by providing the customer with unrivaled technologies and supreme quality.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]