Samsung SDI, the second-largest car battery maker in South Korea, has signed a 7-year deal with Hyundai Motor Co. to provide batteries for its electric vehicles (EVs) in Europe.
The deal, which was announced on Monday, will see Samsung SDI’s P6 batteries power Hyundai’s EVs from 2026 to 2032. The P6 batteries have a high-energy density and use a nickel-rich cathode and a silicon-based anode.
The size of the deal was not disclosed, but an industry source said Samsung SDI would supply enough batteries for about 500,000 EVs over the period. The batteries will be produced at Samsung SDI’s plant in Hungary.
Samsung SDI’s president and CEO Choi Yoon-ho said the deal would help Hyundai strengthen its global market leadership and that the company would offer batteries with advanced technologies and supreme quality.
The deal also adds Hyundai Motor Co. to Samsung SDI’s customer list, which includes General Motors Co., Stellantis, and BMW. The two companies also agreed to collaborate on research for next-generation battery platforms.
