Samsung is reportedly strengthening its position in the EV (electric vehicle) market with the help of a few other South Korean tech giants. According to a new report from local news outlets citing unnamed industry officials, Samsung, SK, LG, and Hyundai Motor Group are joining forces to create a new alliance.
Through this coalition, electric vehicles made by Hyundai and Kia will be equipped with autonomous-driving semiconductors developed by Samsung, batteries made by SK, and OLED instrument panels manufactured by LG Display.
With Samsung's help, Hyundai Motor Group is securing a strong domestic supply chain
Numerous South Korean companies have shown a willingness to advance EV technologies, including Samsung Electronics, Samsung Electro-Mechanics, Samsung SDI, SK, and various LG affiliates. In recent years, Samsung found new partners in Audi and Volkswagen, and Samsung SDI is among the leading EV battery manufacturers globally.
As EVs grow in popularity and the competition intensifies, Hyundai Motor Group seemingly wants to secure a strong domestic supply chain for electric and autonomous car components. An industry official (via The Korea Times) said: “Synergy effects are expected to occur through collaborations among domestic companies which are anticipated to have a significant impact on the development of the domestic industry.”
The supposed new EV coalition comprising Samsung, SK, LG, and Hyundai aims to help all members grow as the market does. Hyundai Motor Group will benefit from this partnership greatly, as the EV carmaker will have domestic component suppliers in proximity and benefit from real-time communication with its supply chain, reduced shipping costs, and more. Since Samsung, SK, and LG are among the top EV component suppliers in the world, this alliance could give Hyundai the upper hand over its competitors in the global EV car segment.\
Samsung and other domestic tech giants might join forces and help Hyundai become the top global EV maker globally. At the very least, this alleged coalition would set up the pieces for Hyundai in such a way that could allow the company to become highly competitive in the global EV market. Of course, the success of an EV — or car, in general — is determined by more than the supply chain that made it possible, but having Samsung, LG, and SK work together as suppliers through an alliance is no small feat.