Samsung SDI is preparing to supply Volkswagen Group with its standardized electric vehicle batteries, expanding its presence in Europe’s fast-evolving EV supply chain.

The South Korean battery-maker is modifying production lines at its Göd plant in Hungary to manufacture Volkswagen’s Unified Cell, a prismatic battery format designed for use across multiple brands and models. Equipment installation is already underway, with mass production expected to begin in 2027, according to industry sources. Capacity has not been disclosed but is estimated to be in the double-digit gigawatt-hour range.

The move would make Samsung SDI the third supplier of the unified cell, alongside Chinese cell supplier Guoxuan and Volkswagen’s in-house battery unit, Powerco.

The Hungarian facility, a key manufacturing hub for Samsung SDI, already supplies batteries to automakers including BMW, Mercedes-Benz, Hyundai Motor and Volkswagen Group. The upgrade involves converting existing production lines from top-terminal to side-terminal designs, as required by the unified cell architecture.

Volkswagen first introduced the unified cell concept in 2021 to standardize battery formats and reduce costs. The design supports multiple chemistries, including lithium iron phosphate and nickel-based batteries, and is intended for deployment across both premium and mass-market vehicles.

Samsung SDI has previously supplied batteries to Volkswagen brands, including Audi and Porsche. The addition of unified cell production is expected to broaden its reach into higher-volume brands, including Volkswagen, Škoda and SEAT, where rollout has begun for entry-level EV models produced in Europe.

While the unified battery strategy was unveiled more than five years ago, large-scale production began recently, with Guoxuan and Powerco starting output in mainland China and Germany, respectively.

Samsung SDI’s expansion comes as Europe strengthens requirements for local battery sourcing under new industrial policies. South Korean manufacturers already account for a significant share of EU battery capacity, reinforcing the company’s push to scale its Hungarian operations.

Demand trends also support the move. Samsung SDI expects EV battery demand in Europe to grow more than 10% in 2026 and plans to raise utilization at its Hungarian plant above 70% in the second half.

Volkswagen’s EV sales fell globally in the first quarter but rose 12% in Europe, underscoring the region’s importance for future growth.

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