Hyundai Motor Group Chairman Chung Eui-sun (right) and Samsung Electronics Chairman Lee Jae-yong are conversing at the Korea-Vietnam Business Forum held at a hotel in Hanoi this June. [Image source=Yonhap News]
Samsung SDI and Hyundai Motor Company have signed a seven-year electric vehicle battery supply contract.
Samsung SDI announced on the 23rd that it will supply batteries for Hyundai Motor's next-generation European electric vehicles from 2026 to 2032, a period of seven years. The supply volume is known to be equivalent to 500,000 electric vehicles.
Hyundai Motor has adopted SK On batteries for multiple electric vehicle models including Ioniq 5, Ioniq 6, EV6, EV9, GV60, and GV70. LG Energy Solution supplies pouch-type batteries for models such as Kona EV and Ioniq 6. However, this is the first time Hyundai Motor has signed a battery supply contract with Samsung SDI. As a result, Hyundai Motor will receive batteries from all three major domestic battery manufacturers.
The battery collaboration between the two companies was initiated by the meeting between Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun in May 2020. The heads of these two leading Korean companies had never met for business purposes before, attracting significant attention from the business community. At that time, the two leaders met at Samsung SDI's Cheonan plant, toured the electric vehicle battery development and production site, and exchanged opinions on next-generation battery business. Since then, the two companies have continued technology exchanges and preliminary project collaborations related to electric vehicle batteries, increasing mutual understanding, which eventually led to this contract signing.
In the past, Samsung Group and Hyundai Motor Group were competitors in the finished car market. Samsung established Samsung Motors in 1995 and sold finished cars under the name 'Renault Samsung Motors' from the mid-2000s. However, around 2021, there were talks of Samsung Card selling its stake in Renault Samsung Motors, and since last year, the period for Renault to use the 'Samsung' brand has ended. The two groups, long-time rivals in the finished car industry, have been actively collaborating in the automotive electronics business. Starting with Samsung Display's OLED displays supplied to Hyundai Motor's Ioniq 5, Genesis GV60 is equipped with Samsung Electronics' automotive image sensors. This year, Hyundai Motor added Samsung Electronics' infotainment processor 'Exynos Auto V920' to its supply list, expanding collaboration into the automotive semiconductor field. This month, Samsung Electro-Mechanics also supplied camera modules used in parking assistance systems to Hyundai Motor.
With this contract, Samsung SDI will supply Hyundai Motor with the P6, a 6th-generation prismatic battery currently under development. The newly unveiled product can improve electric vehicle charging performance. It uses a cathode material with a high nickel content of 91%. Silicon material is applied to the anode, improving energy density by more than 10% compared to existing products. Additionally, with the application of silicon material and manufacturing process improvements, it can be charged to over 80% in just 10 minutes. The P6 will be produced at Samsung SDI's Hungary plant and supplied to Hyundai Motor's local European factories.
Through cooperation between the two companies, Hyundai Motor has enabled diversification of battery form factors through prismatic batteries. Hyundai Motor has been receiving pouch batteries from LG Energy Solution and SK On. It was also receiving prismatic batteries from CATL, and now Samsung SDI has become an additional prismatic battery supplier. The two companies plan to continue their partnership, including joint development of next-generation battery platforms.
Choi Yoon-ho, CEO of Samsung SDI, said, "We have taken the first step in strategic cooperation with Hyundai Motor, a global leader in the automotive industry," adding, "We will do our best to strengthen Hyundai Motor's global electric vehicle market leadership through long-term cooperation with Samsung SDI's unique super-gap technological competitiveness and top-quality products."
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