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中文According to a January 25 report by the South Korean media outlet “Business Post,” Samsung SDI plans to invest approximately 1 trillion won in its Göd factory in Hungary to establish a cylindrical battery production line. The company’s CEO, Choi Joo-sun, intends to shift the product portfolio for the European electric vehicle battery market from prismatic batteries to high-performance cylindrical batteries.
The European electric vehicle market is currently undergoing structural adjustments. Due to the economic slowdown, consumers are showing a preference for more economical electric vehicles, leading to a surge in demand for lithium iron phosphate (LFP) batteries. Chinese battery manufacturers, leveraging the cost advantages of LFP batteries, are rapidly capturing market share in Europe.
This shift has directly impacted Samsung SDI. According to data from SNE Research, from January to November 2025, Samsung SDI’s electric vehicle battery sales in Europe reached 11.7 GWh, a year-on-year decline of 19%. Its market share also dropped from 9.3% to 5.7%.
More critically, with CATL entering Europe and becoming BMW’s largest battery supplier, Samsung SDI lost its long-held position as BMW’s top battery supplier and was directly affected by BMW’s struggles in electric vehicle sales.
Furthermore, combined with the downturn in the U.S. electric vehicle market and reduced demand in North America due to subsidy cancellations, Samsung SDI’s performance has been severely impacted. Citing financial data, South Korean media reported that Samsung SDI’s revenue for 2025 was 129.095 trillion won, with an operating loss of 1.7272 trillion won, marking its first annual loss since 2016. For 2026, revenue is projected to be 150.23 trillion won, with an operating loss of 286.2 billion won.
As growth in the Chinese and American electric vehicle markets slows, Europe has become a focal point of competition for battery manufacturers. Recently, following the UK and France, Germany also reinstated its electric vehicle subsidy policy.
To reverse its decline in the European market, Samsung SDI is accelerating its strategic deployment of its 46-series cylindrical batteries to secure a position as BMW’s fourth cylindrical battery supplier.
Currently, BMW primarily uses prismatic batteries. However, BMW had earlier announced that starting from 2027–2028, its new-generation electric vehicle platform, “Neue Klasse,” will be equipped with Gen6 large cylindrical batteries.
BMW had previously announced its three large cylindrical battery suppliers: CATL, EVE Energy, and Envision AESC. Both CATL and EVE Energy have already established battery factories in Debrecen, Hungary, and are accelerating their progress toward mass production. CATL’s Hungarian factory is set to commence mass production in March or April this year, with an initial planned annual capacity of up to 40 GWh. It is reported that all production capacity has already been reserved by customers. EVE Energy’s Hungarian factory has a planned capacity of 30 GWh, with construction work fully underway and expected to be completed and operational by 2027.
In response, Samsung SDI recently placed orders for hundreds of cylindrical battery production equipment from its partners. Industry predictions estimate the investment scale to be around 1 trillion won. The company plans to begin introducing the equipment in the second half of this year, complete preparations for mass production by 2027, and achieve full-scale production by 2028.
According to previously disclosed information from BMW, the Gen6 large cylindrical battery, with a diameter of 46 mm, is specifically designed for BMW’s “Neue Klasse” vehicle electronic architecture. It can increase driving range by up to 30% (WLTP). Compared to the fifth-generation prismatic cells, the Gen6 cylindrical cells have a higher nickel content and reduced cobalt content in the cathode, along with increased silicon content in the anode, resulting in a volumetric energy density improvement of over 20%.
However, earlier reports indicated that BMW’s cylindrical battery requirements are for 4695 and 46120 cells—meaning a diameter of 46 mm but heights of 95 mm and 120 mm, respectively, rather than 80 mm.
Samsung SDI’s cylindrical battery roadmap aligns closely with BMW’s requirements. Its cylindrical batteries are 46P type, with a diameter of 46 mm, and can be produced in various heights, such as 80 mm, 95 mm, 100 mm, and 120 mm. Compared to the 2170 cylindrical batteries, these offer over five times the energy capacity and output.
Additionally, last year, the South Korean media outlet etnews cited industry sources stating that the first mass-produced 46P cylindrical battery from Samsung SDI’s Hungarian factory is expected to be the 4695 model and is likely to be installed in BMW’s next-generation electric vehicle models in Europe.
In this report by “Business Post,” an analyst from Shin Young Securities pointed out that as Chinese companies strengthen their position in the European market, Samsung SDI’s sales of ternary prismatic batteries may continue to face pressure. However, starting from 2027, with the supply of cylindrical batteries for the new electric vehicle platform, its sales in Europe are expected to recover.
Overall, it is almost an open secret that Samsung SDI will become BMW’s fourth cylindrical battery supplier.
