Shares of Samsung SDI Co. are flying high on the first trading day of 2021 on expectations for it joining the selective supply chain for Hyundai Motor Group’s new-generation electric vehicles running on proprietary EV platform.

Samsung SDI is said to have been shortlisted with SK Innovation as finalists for the exclusive battery supplier for Hyundai Motor Group’s upcoming EV models that will be built on Electric-Global Modular Platform (E-GMP), the conglomerate’s proprietary platform for EV models including Ioniq sport utility vehicles, according to industry sources on Sunday.

Samsung SDI shares gained 6.85 percent to finish at 671,000 won ($620.09) on Monday, and SK Innovation rose 21.58 percent to 231,000 won.

Hyundai Motor will award the third battery order worth 25 trillion won for E-GMP vehicles this month. The automaker is expected to pick at least two suppliers, given the bulky order volume. Samsung SDI and SK Innovation stand on par in pricing and product quality, making them both highly competent suppliers, according to industry sources,

Some could go to LG Energy Solution Ltd. (previously battery business of LG Chem).

The third batch of E-GMP batteries will be installed on Ioniq 7 electric SUV to be launched in 2023. Previously, Hyundai Motor picked SK Innovation as the EV battery supplier for its first E-GMP EV Ioniq 5. For its second batch for the Ioniq 6, the automaker selected LG Energy Solution and China’s Contemporary Amperex Technology Co. (CATL). The earlier EV battery orders are estimated at 10 trillion won and 16 trillion won, respectively.

If Samsung SDI wins the final EV battery orders from Hyundai Motor, it would make the first cooperation between the two Korean conglomerates. Following the EV battery partnership, Samsung and Hyundai under the new leadership of the third generation of founders are expected to expand their partnership in the automotive sector beyond EV battery to semiconductors for self-driving car technology.

Local industry experts anticipate Hyundai Motor Group to forge strong alliance with the country’s three major EV battery makers – Samsung SDI, SK Innovation, and LG Energy Solution – to better vie against foreign rivals. According to a report by EV Volumes, Hyundai Motor Group became the world’s No. 4 EV maker after selling 170,000 units in January-November last year, reducing the gap against global EV majors – Tesla, Volkswagen, and Renault-Nissan-Mitsubishi alliance.

In the global EV battery market, LG Energy Solution stood No. 2 with a 22.6 percent share, Samsung SDI No. 4 with 5.8 percent, and SK Innovation No. 5 with 5.5 percent, based on 2020 January-November sales, according to SNE Research report.

By Won Ho-seop, Lee Jong-hyunk and Cho Jeehyun

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