South Korean automotive firm Hyundai Motor marked a milestone in its foray into green transportation by signing an agreement with Samsung SDI wherein the latter will supply the carmaker with electric vehicle (EV) batteries for a seven-year period which begins in 2026.
This is the first-ever agreement between the automaker and the battery production arm of one of the world’s leading tech firms in the field of green transportation and is actually geared towards securing Hyundai’s foothold in the European EV market.
Under the agreement, Samsung SDI will supply Hyundai Motor with prismatic batteries produced at the former’s production plant in Hungary, specifically for EVs marked for sale within the European Union from 2026 to well into 2032. As such, Samsung SDI estimates that their batteries could be used to power around 500,000 EVs throughout the stated period.
As of press time, however, neither of the companies involved has disclosed the total size of the agreement.
Interestingly, Hyundai is just the latest in Samsung SDI’s growing list of global clients in the EV industry.
Currently, Samsung SDI supplies batteries to some of the world’s leading automotive companies, including Germany’s BMW, as well as American firms General Motors and Stellantis which is the parent firm behind Chrysler.
Samsung SDI announced earlier this month that it is set to invest around $2 billion for the construction of a second EV battery production factory to be operated in tandem with Stellantis. The new facility will be located in the state of Indiana and is expected to begin production come 2027.