Hyundai Motor Company and Samsung SDI are taking a significant step toward producing batteries for the highly anticipated Genesis GV90 EV SUV. With production plans spanning Korea and China, this strategic collaboration aims to tackle regulatory hurdles and secure a competitive edge in the global electric vehicle (EV) market.
Samsung SDI Selected as Battery Supplier for Hyundai GV90
Scheduled for release in the first quarter of 2026, the GV90 is poised to become the flagship model in Hyundai’s premium Genesis lineup. Samsung SDI has been officially selected as the exclusive battery supplier, marking a pivotal collaboration for both companies.
Initially, Samsung SDI planned to manufacture batteries solely at its Xi’an plant in China to benefit from lower production costs and rapid mass production capabilities. However, growing export concerns—particularly regarding the U.S. Inflation Reduction Act (IRA)—prompted Hyundai to request domestic production options.
Why Hyundai Is Expanding Battery Production to Korea
The Inflation Reduction Act (IRA) imposes strict regulations on EV subsidies, excluding vehicles made with Chinese battery components. As China is categorized under the Foreign Entity of Concern (FEOC), EVs with Chinese-made batteries do not qualify for U.S. subsidies.
Moreover, the incoming Trump administration, set to begin in January 2025, has proposed additional tariffs on Chinese battery cells and raw materials. To mitigate risks and ensure competitive pricing in the U.S. market, Hyundai is actively pushing for local production in Korea.
Samsung SDI’s Domestic Production Plans
Samsung SDI is reportedly reviewing options to remodel idle production lines at its Cheonan and Ulsan plants in Korea. The goal is to build a dedicated GV90 battery production line by early 2025, with mass production expected to ramp up in the second half of 2025.
According to an industry insider:
“Samsung SDI will likely reduce planned equipment installations at the Xi’an plant and establish a separate production line for the GV90 batteries in Korea. A final decision is expected by early next year.”
GV90: Hyundai’s Premium Genesis Electric SUV
The Genesis GV90 represents Hyundai Motor Company’s top-tier entry into the large electric SUV segment. Notably, it will be the first Hyundai EV powered by Samsung SDI batteries, marking a milestone in their growing partnership.
Previously, Samsung SDI secured a contract with Hyundai to supply square batteries for European electric vehicles, with deliveries beginning in 2026. However, the GV90 project is expected to advance faster, highlighting its strategic importance.
Mass Production Timeline for GV90 Batteries
• First Half of 2024: Final production line decision (Korea/China).
• Second Half of 2024: Construction of GV90 battery production lines.
• Second Half of 2025: Battery mass production begins.
• Q1 2026: Official launch of the Genesis GV90.
Source: ETNews
