Samsung SDI announced on Monday that it has signed a contract with Hyundai Motor Company to supply batteries for the company’s next-generation electric vehicles (EVs) to be launched in the European market from 2026 to 2032.

This is the first time Hyundai has partnered with Samsung SDI to power its EV batteries. While the size of the deal has not been disclosed, Samsung SDI is expected to supply 40 gigawatt-hours of P6 version 6 square batteries, enough to power five million EVs.

The P6 battery features a 91% nickel high NCA cathode and Samsung SDI’s proprietary silicon-based anode to maximize energy density to the highest level.

The batteries will be produced at Samsung SDI’s Hungary plant and supplied to Hyundai’s production plants in Europe.

Analysts say Hyundai may look to sell premium electric cars with high-value-added P6 batteries in the European market. The deal is expected to provide a significant opportunity for the automaker to increase the adoption of prismatic batteries.

“We have taken the first step with Hyundai Motor, which leads the global automotive industry,” said Choi Yunon-ho, CEO of Samsung SDI.” Our company will do everything in our power to help Hyundai expand its long-term relationship with the automaker to provide customers with unrivaled technology and the highest quality, thereby strengthening its global market leadership.”

Samsung SDI’s latest partnership with Hyundai comes three years after Samsung Electronics Executive Chairman Lee Jae-yong and Hyundai Motor Group Executive Chairman Chung Eui-seon met at the battery maker’s factory in Cheonan, Chungcheongnam-do.

Their meeting attracted widespread attention at the time, as it was the first time the two conglomerates had met for business purposes. Since then, the two companies have been working together to develop batteries for next-generation electric vehicles.