South Korea’s Samsung SDI said on Monday it will supply Hyundai Motor with electric vehicle (EV) batteries for seven years starting 2026, marking the first battery supply deal between the two companies.
“The latest supply deal marks the first ever partnership between Samsung and Hyundai Motor Group in the field of electric vehicle batteries,” Samsung SDI said in a statement.
The battery maker, which supplies to General Motors Co, Stellantis, and BMW among others, added that it will supply prismatic batteries manufactured at its factory in Hungary for Hyundai Motor’s EVs targeting the European market from 2026 through 2032.
While Samsung SDI and Hyundai Motor did not disclose the size of the deal, Samsung SDI would likely supply EV batteries that could power about 500,000 EVs over the next seven years, an industry source familiar with the matter told Reuters.
Earlier this month, Samsung SDI said it plans to invest 2.7 trillion won ($2 billion) to build a second joint EV battery plant with Stellantis in the U.S. state of Indiana, targeting to start production in 2027.
Shares of Samsung SDI were trading up 0.3%, versus benchmark KOSPI’s (.KS11) 0.1% fall as of 0203 GMT.