Samsung SDI has signed a mega deal to supply 3.8 trillion won worth of electric vehicle batteries to Germany's BMW Group. The "Electric Vehicle Battery Alliance" between Samsung SDI and BMW Group, which began in 2009 with joint R&D, has paid off for the first time in 10 years.
Samsung SDI is planning to invest 1.2 trillion won into its Hungarian plant in line with increasing supply of electric vehicle batteries.
BMW Group Korea said on Nov. 21 that it has signed a long-term business agreement with Samsung SDI to purchase fifth-generation battery cells on Nov. 20. As a result, BMW Group has decided to purchase 2.9 billion euros worth of electric vehicle batteries from Samsung SDI for 10 years from 2021 to 2031.
BMW Group recently announced a plan to launch 25 types of eco-friendly vehicles by 2025, aiming to dominate the future mobility market. Of them, 12 are pure electric vehicles.
As Samsung SDI's 5th generation batteries are installed in these next-generation electric vehicles sequentially, it is expected that its key performance such as driving distance and fast charging will improve. This shows the two companies' past 10 years accompanying each other leading to a new 10-year partnership
Analysts say that the global automotive industry network that Samsung Electronics Vice Chairman Lee Jae-yong has built has helped Samsung SDI and BMW continue their cooperation for a long time.
When Lee was president of Samsung Electronics in 2012, he went to Germany to meet with then BMW Chairman Norbert Reithofer in person to discuss expanding business cooperation, and has continuously taken care of the battery business.