German car giant Volkswagen Group is strengthening its partnership with the South Korean technology leader, with Samsung SDI winning a contract to supply battery cells for VW's next-generation electric vehicles. The collaboration follows Samsung's recent success in securing a similar deal with Mercedes-Benz.
A key element of the agreement is the production of Unified Cells, a standardized prismatic battery design that Volkswagen introduced in March. 2021 with the aim of unifying technology across its brands and reducing costs.
- Place of production: Samsung SDI plant in Göd, Hungary (Plant 1).
- Technical adjustments: Samsung has already modified two production lines at its factory and installed the necessary equipment to make the cells meet Volkswagen's specifications.
- Capacity: Production is expected to be in the double-digit GWh range.
Broader impact within the group
Although Volkswagen is the main customer, the new batteries are also likely to appear in models from SEAT and Skoda. Samsung SDI thus becomes the third key supplier for the German group, joining the Chinese company Guoxuan and the group's own battery division, PowerCo.
For Samsung SDI, this is a logical continuation of the collaboration. In the past, it has already supplied specific batteries with top terminals for premium brands such as Audi and Porsche.
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Market situation
This strategic agreement comes at a time when Volkswagen Group electric vehicle sales recorded a 2026 slight decline (7,7% to 200,000 units). The main reasons are US tariffs and the growing dominance of domestic Chinese brands in the Asian market. A stable supply chain and battery unification should help Volkswagen reverse this situation and increase production efficiency.
By the way, here's a technical detail: Volkswagen's unified cell has dimensions of 256 mm × 106 mm × 24,8 mm and has terminals on both sides, which allows for more flexible integration into various vehicle platforms. With the arrival of new models on the market, these technologies may eventually appear in the offer Skoda stock vehicles.
