According to foreign media reports, Samsung SDI has finally finalized its investment plan to build its third battery factory in Hungary. Samsung SDI is expanding its existing second factory in Hungary, which is expected to be completed in September.

Sources say the company is expected to spend more than 6 trillion won (about 32.4 billion yuan) on overall facility expansion this year, of which over 1 trillion won (about 5.4 billion yuan) will be used to build the third factory.

Earlier this month, during his visit to Samsung SDI's factory in Malaysia, Samsung Electronics CEO Lee Jae-yong said that bold investments are still needed despite the economic downturn leading to a decline in demand for electric vehicles and batteries.

It is reported that Samsung SDI plans to supply batteries for electric vehicles launched by automakers such as Hyundai in Europe from 2026 to 2032 through its factory in Hungary. These batteries will adopt a prismatic design and use a high-nickel cathode with a nickel content exceeding 91% and an anode containing more than 10% silicon, which is a silicon-carbon nanocomposite material.

Notably, on October 23, 2023, Samsung SDI announced that it will supply batteries to Hyundai Motor's European plants for electric vehicles from 2026 to 2032 over a 7-year period.

It is understood that this is the first time Samsung SDI has signed a battery supply contract with Hyundai Motor in the electric vehicle battery field. Samsung SDI will supply its sixth-generation prismatic P6 battery under development to Hyundai Motor. The P6 is a product that maximizes energy density by increasing the nickel ratio in the NCA cathode material to 91% and applying proprietary silicon materials to the anode material. The P6 will be produced at Samsung SDI's factory in Hungary and supplied to Hyundai Motor's European plants.

According to data previously released by the South Korean research institute SNE Research, in 2023, the global installed capacity of batteries for registered electric vehicles (EVs, PHEVs, and HEVs) was approximately 705.5 GWh, an increase of 38.6% year-on-year. Among them, Samsung SDI ranked seventh with an installed capacity of 32.6 GWh, up 36.1% year-on-year.

Samsung SDI is growing the fastest among South Korea's "Big Three" battery makers. Driven by strong sales of BMW iX/i4/i7, Audi Q8 e-Tron, and Fiat 500e in Europe, as well as good sales of Rivian R1T/R1S and BMW iX in North America, Samsung SDI continues to maintain growth. The company is also reportedly planning to secure new platforms and operate new production bases in the United States.