Volkswagen is reportedly set to add Samsung SDI as a supplier of its Unified Cell battery technology, expanding the supply base for the standardized battery format that underpins the automaker’s electric vehicle strategy.
According to a report from South Korean publication The Elec, Samsung SDI has secured a major battery supply agreement with Volkswagen Group to manufacture Unified Cells for the automaker’s electric vehicles. Neither Volkswagen nor Samsung SDI has publicly confirmed the reported deal.
The Unified Cell was introduced during Volkswagen’s Power Day event in 2021 as part of the group’s plan to standardize battery technology across a wide range of electric vehicle models. The prismatic battery cell measures 256 x 24.8 x 106 millimeters and is designed to support multiple battery chemistries and vehicle segments.
Potential Third Strategic Supplier
Currently, Unified Cells are produced by Volkswagen subsidiary PowerCo at its Salzgitter facility in Germany and by Chinese battery manufacturer Gotion at its plant in Hefei, China.
If the reported agreement proceeds, Samsung SDI would become the third strategic supplier of the battery format.
According to The Elec, Samsung SDI is modifying two production lines at its battery plant in Göd, Hungary, to manufacture the cells. The reported conversion involves shifting from traditional top-terminal battery designs to Volkswagen’s preferred side-terminal configuration used in the Unified Cell architecture.
Production is reportedly scheduled to begin in 2027, with output expected to reach double-digit gigawatt-hour capacity levels.
Flexible Battery Platform
Volkswagen developed the Unified Cell to support a broad range of electric vehicles while reducing manufacturing complexity and costs.
The standardized format can accommodate different battery chemistries depending on vehicle requirements, including lithium iron phosphate (LFP), nickel manganese cobalt (NMC) and potentially future solid-state battery technologies.
The approach is intended to allow Volkswagen to use a common cell design across models ranging from compact electric cars to premium SUVs and high-performance vehicles.
Longstanding Relationship
Reports linking Samsung SDI to Volkswagen’s Unified Cell program first emerged in 2021, although the companies never formally confirmed those discussions.
The two groups already maintain an existing business relationship. Volkswagen selected Samsung SDI as a battery supplier for several electric vehicle programs in 2018 and has sourced battery cells from the company for various models.
European Manufacturing Considerations
Producing Unified Cells at Samsung SDI’s Hungarian facility could support Volkswagen’s efforts to increase European battery sourcing as policymakers seek to strengthen local manufacturing capabilities.
The reported move comes as the European Union advances industrial policies aimed at expanding domestic clean technology supply chains and encouraging greater regional value creation within the automotive and battery sectors.
As automakers continue to scale electric vehicle production, securing diversified battery supply sources remains a key priority for managing costs, reducing supply chain risks and meeting regional manufacturing requirements.
