Samsung SDI is betting big on Europe’s electric vehicle recovery, channeling 1.65 trillion won ($1.2 billion) from a recent capital raise into expanding its Hungarian operations. The South Korean battery maker plans to invest 323.6 billion won ($236 million) specifically in upgrading its Göd facility to produce prismatic batteries for Hyundai and Kia’s European models.
The timing reflects Samsung SDI’s confidence in Europe’s regulatory-driven EV push. EU emissions standards now cap new car carbon dioxide output at 93.6 grams per kilometer, with automakers facing fines of 95 euros per excess gram. This regulatory pressure helped drive a 22.8% increase in European EV deliveries during the first quarter.
Samsung SDI’s rights offering exceeded 100% subscription rate, with funds scheduled for injection on May 30. The company is converting its first Hungarian factory to use stacking methods for prismatic battery production while expanding its second facility. Industry sources estimate Samsung SDI will supply batteries for approximately 500,000 Hyundai and Kia vehicles through 2032.
The expansion positions Samsung SDI to capitalize on Europe’s EV market recovery while diversifying beyond its current BMW and Volkswagen customer base. However, the substantial capital commitment underscores the intense competition and capital requirements in the rapidly evolving battery sector.
