Samsung SDI builds EV momentum with Audi, Hyundai deals

Samsung SDI is charging ahead to claim a bigger slice of the electric vehicle battery market, bolstered by new supply agreements, upcoming product launches and accelerating demand for EVs, particularly in Europe.

One of the company’s latest moves is expanding its supply with Audi. Samsung SDI recently began supplying batteries for two of Audi’s EV models, the E-Tron 50 Quattro and E-Tron Sportback 50 Quattro, which previously used batteries from LG Energy Solution. Of the 14 Audi EV models currently available in the Korean market, nine now run on Samsung SDI batteries, while the remaining five still use cells from LG Energy Solution.

“We assemble and integrate our own battery packs using cells from LG, Samsung or other battery manufacturers,” an Audi Korea official explained. “The choice of supplier can vary depending on multiple factors, including logistics and availability.”

Samsung SDI’s involvement with Audi is set to grow with the upcoming launch of the Q6 E-Tron in South Korea during the first half of 2024. This midsize electric sport utility vehicle will feature a large 100-kilowatt-hour battery pack, allowing for an estimated driving range of up to 641 kilometers on a single charge -- based on European certification standards. China’s CATL, the world’s largest battery maker, will also supply cells for certain versions of the Q6 E-Tron alongside Samsung SDI.

The company is also accelerating production timelines for its much-anticipated 46-pi cylindrical battery cells. Initially planned for a later debut, mass production of the 46-pi battery will now begin in early 2024. These larger-format cells, measuring 46mm in diameter, offer a notable boost in performance, with five times more energy capacity and six times greater output compared to Samsung SDI’s current 2170 cylindrical cells.

They also promise a 16 percent improvement in driving range, which could make them a competitive choice for automakers looking to improve EV efficiency and performance. Samsung SDI plans to offer several height variations of the 46-pi cells, such as 4680 and 4695, to cater to different vehicle designs and customer requirements.

On the customer front, Samsung SDI is diversifying its partnerships. The company recently signed a major contract with Hyundai Motor Company to supply its sixth-generation prismatic batteries, known as P6, over seven years beginning in 2026.

This agreement will support Hyundai and Kia’s transition to using Samsung SDI batteries in their EV lineups, including the luxury Genesis brand’s upcoming GV90 electric SUV. Until now, Hyundai and Kia primarily relied on LG Energy Solution and SK On for their battery supplies, making this a notable shift in their sourcing strategy.

These developments come as the EV market prepares for renewed growth next year, particularly in Europe, where stricter emissions regulations are set to take effect. Starting next year, automakers in the region must cut average carbon dioxide emissions from their vehicles by 15 percent compared to 2021 levels, a requirement expected to accelerate the transition to electric mobility. Germany, Europe’s largest automotive market, is also considering new tax incentives to promote corporate EV adoption.