South Korea's leading conglomerates and longtime rivals, Hyundai Motor Group and Samsung Group, are accelerating their cooperation in what is seen as a "survival alliance" to respond to a global crisis. With the fate of each group hinging on how it navigates the uncertainties of the U.S.-China hegemonic rivalry and supply chain realignment, they are moving in a direction that prioritizes practical interests.
From the era of Samsung Group founder Lee Byung-chul and Hyundai Group founder Chung Ju-yung (first generation), through Samsung Group's late Chairman Lee Kun-hee and Hyundai Motor Group Honorary Chairman Chung Mong-koo (second generation), Samsung and Hyundai Motor were fierce competitors vying for the top spot in the business world. But by the third generation — Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Euisun — the relationship shifted to a strategic partnership as competition intensified against global companies beyond the domestic market. Trust built on the two leaders' long-standing personal ties is also said to have played a role.
The scope of cooperation spans batteries, robots, semiconductors, automotive electronics, and software-defined vehicles (SDVs). While the two groups had few overlapping business areas in the past, points of contact are rapidly increasing as both have chosen physical artificial intelligence (AI) as a new growth engine.
The most active area is robotics. Last year, Hyundai Motor and Kia signed a memorandum of understanding (MOU) with Samsung SDI to jointly develop high-performance batteries dedicated to robots, going beyond electric vehicle batteries. Hyundai Motor and Kia's Robotics Lab handles the evaluation and performance enhancement of the newly developed batteries for robot applications, while Samsung SDI is responsible for developing high-capacity materials.
There are also suggestions that Samsung SDI's batteries could be used in "Atlas," a humanoid that Hyundai Motor Group's robot subsidiary Boston Dynamics is preparing for mass production. Samsung SDI is developing solid-state batteries for robot installation, targeting mass production in the second half of 2027. Hyundai Motor Group has announced plans to build a humanoid production plant with an annual capacity of 30,000 units by 2028. To date, Samsung SDI batteries have been installed in Hyundai's delivery robot "DAL-e" and its robot platform "MobED."
In robotics, a multi-legged walking robot for counterterrorism operations, jointly developed by Rainbow Robotics and Hyundai Rotem, also stands out. Rainbow Robotics handles the robot dog platform, while Hyundai Rotem takes charge of modifications to mount weapons systems. The two companies are reportedly pursuing a plan to supply the robot to the Army, targeting the second half of this year. Samsung Electro-Mechanics is aiming to supply the camera module that will serve as Atlas's eyes, and said it plans to begin initial mass production of high-definition, high-pixel sensing modules for humanoids in the third quarter.
This robot battery alliance is built on the foundation of electric vehicle battery cooperation. Samsung SDI signed a contract to supply batteries from its Hungary plant for Hyundai Motor and Kia electric vehicles bound for Europe over the seven years from 2026 to 2032, with the results being the Hyundai Ioniq 3 and Kia EV2, which begin local sales this year. The third joint product, the Genesis GV90, is also set for a global unveiling and launch in the third quarter. Samsung SDI applied a stack structure — stacking cathodes, anodes, and separators layer by layer — to these batteries, achieving both high capacity and long life.
Hyundai Motor and Samsung Group are also expanding cooperation in semiconductors and automotive electronics. In 2023, Hyundai Motor and Samsung Electronics formed a partnership to supply the "Exynos Auto V920," a chip for infotainment (a blend of information and entertainment). The Exynos Auto V920 features a high-performance graphics processing unit (GPU) and low-power memory, controlling six displays and 12 camera sensors at once and supporting driver monitoring functions.
Samsung Electronics' foundry (contract chip manufacturing) reportedly won an order last October to produce Hyundai Motor's in-house-developed 8-nanometer (one billionth of a meter) autonomous driving chip. Hyundai Motor aims to complete chip development in 2028 and begin mass production in 2030. The two companies are also said to be cooperating on developing embedded magnetoresistive memory (eMRAM), a next-generation automotive semiconductor. In addition, Samsung Display resumed supply cooperation after a 10-year hiatus by supplying automotive organic light-emitting diodes (OLED) for Hyundai's "Ioniq 5" in 2021, and has since steadily supplied OLED for new models including "Genesis."
The two groups' cooperation extends to SDVs, the core of future mobility. In March this year, Hyundai Motor joined hands with Samsung Electronics to launch the "Car-to-Home" service. It links the vehicle's infotainment system with Samsung Electronics' Internet of Things (IoT) platform "SmartThings," allowing users to remotely control home appliances even while driving. This expands on the "Home-to-Car" service, which allows remote control of vehicles via mobile, launched last September.
