Samsung SDI and Hyundai Motor Group are reportedly set to enter an electric vehicle battery deal that will have Samsung's prismatic batteries supplied from 2026 to 2032 for Hyundai's targeted European market.
The batteries contracted will be manufactured in Hungary and sent to a Hyundai Motor production site in Europe. The prismatic batteries will be the company's latest sixth edition, "P6."
Samsung and Hyundai's Deal is reportedly the first contract between the two companies regarding electric vehicle batteries.
The Monday-released statement states that the deal is advantageous for the two companies. Samsung stated that the partnership allows the company to "[gain] additional growth momentum in line with the expansion of the partnership."
(Photo : JUNG YEON-JE/AFP via Getty Images)
A man walks past the Samsung logo displayed on a glass door at the company's Seocho building in Seoul on April 7, 2023
On the other hand, Hyundai Motor Group will be able to obtain prismatic batteries, increasing its use and diversifying the automaker's available types of batteries.
Samsung SDI CEO and President Yoon-ho Choi stated the company's commitment to the deal by reinforcing its best efforts to help Hyundai maintain its position as the market leader. The CEO stated that the company will " expand [their] long-term partnership with the automaker by providing the customer with unrivaled technologies and supreme quality."
A source from Reuters stated that the deal will likely see batteries from Samsung powering about 500,000 Hyundai electronic vehicles during the following seven years.
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Samsung and Hyundai's Other Partnership
Despite the first contract regarding electronic vehicle batteries, this is not the first time the two companies have partnered with one another.
Samsung Electronics Co., Ltd., and Hyundai Motors recently announced a partnership that saw the world leader in advanced semiconductor technology supplying its automotive processor, the Exynos Auto V920, to power Hyundai's upcoming in-vehicle infotainment (IVI) systems, which are scheduled to debut by 2025.
Samsung's newest processor will reportedly provide Hyundai's next-generation vehicles with a real-time display of crucial driving data and smooth video content playing with high-end graphics and games on many displays.
Samsung's processors will also improve processing power by enabling 1.7 times more than the previous generation, well-suited for autonomous driving. Significant improvements have been made to the processor's graphics and artificial intelligence (AI) performance, enhancing visual presentation on displays and optimizing driver interaction with in-car information.
This is reportedly the first time Samsung and the leading global mobility company Hyundai Motor have worked together on automotive semiconductors.
Hyundai and Samsung's President-Requested Partnership
Samsung and Hyundai's Now-Realized Partnership was expected as developments and meetings were seen between the two de-facto leaders of the South Korean Giants meeting in July 2022.
The meeting saw Lee Jae-Yong of Samsung and Chung Euisun of Hyundai Motor discussing mobility technologies for Hyundai and Kia Motors' research and development center. Samsung's executives were informed of the upcoming robotics and urban air transportation solutions from Hyundai Motor.
This meeting was also after a 2021 report by the Korea Times stated that the nation's former President, Moon Jae-in, made an unusual request, informing the executives of Samsung and Hyundai Motor of the need for cooperative cooperation in automotive semiconductors.
Moon requested the meeting at Cheong Wa Dae with the heads of the major corporations in the nation. President Moon has previously stated that some of Korea's potential development engines include logic chips, the hydrogen-related value chain, electric vehicles, and OLEDs.
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