SEOUL (Reuters) – South Korea’s Samsung SDI announced on Monday that it has secured a deal to supply Hyundai Motor with electric vehicle batteries for a period of seven years, starting in 2026.
The agreement signifies a significant boost for Samsung SDI, as it solidifies its standing as a major player in the electric vehicle battery market. With Hyundai Motor increasingly focusing on electric vehicles in its product lineup, the partnership will provide a steady and reliable supply of batteries for the automaker.
The decision to form this strategic partnership was based on the shared vision of both companies for a sustainable and eco-friendly future. By combining the expertise of Samsung SDI in battery technology and the manufacturing capabilities of Hyundai Motor, the collaboration aims to accelerate the transition towards electric mobility.
Hyundai Motor, a leading global automaker, has been ramping up its efforts in the electric vehicle market as part of its long-term business strategy. Earlier this year, the company unveiled its dedicated electric vehicle platform, E-GMP, and has announced plans to launch several fully-electric models in the coming years.
For Samsung SDI, this partnership represents a major opportunity to expand its market share in the electric vehicle battery industry. The company has been making significant investments in battery technology and production capacity, positioning itself as a key supplier for automakers around the world. The collaboration with Hyundai Motor further solidifies Samsung SDI’s position in the market.
The demand for electric vehicles is rapidly growing, driven by global efforts to reduce carbon emissions and combat climate change. As governments around the world implement stricter regulations on fossil fuel vehicles, automakers are increasingly relying on batteries from companies like Samsung SDI to power their electric vehicles.
With this new supply agreement, Hyundai Motor can ensure a stable source of batteries for its electric vehicle production, allowing the company to meet the growing demand for electric vehicles in markets around the world.
In addition, the partnership could also lead to further collaboration in the development of next-generation battery technologies, as both companies continue to innovate and push the boundaries of electric mobility.
The announcement of the Samsung SDI-Hyundai Motor partnership has been met with positive reactions from the industry and investors, reflecting the market’s confidence in the growth potential of the electric vehicle sector.
As the global shift towards electric mobility gains momentum, partnerships like this will play a crucial role in driving the widespread adoption of electric vehicles and shaping the future of transportation.
(Reporting by Heekyong Yang, Soo-hyang Choi; Editing by Diane Craft)
