Samsung SDI is setting the stage for a significant major expansion in its EV battery factory in North America. The announcement came directly from Yoonho Choi, the CEO, during the annual shareholders’ meeting. He highlighted the soaring demand for EVs as the catalyst for this strategic move. Samsung SDI plans to achieve this growth by forming new joint ventures and constructing additional manufacturing facilities.
Samsung SDI is considering building an independent EV battery factory in North America to ramp up production capacity and compete with rivals. https://t.co/dpnttBXbmB
— The Korea JoongAng Daily (@JoongAngDaily) March 20, 2024
Strategic Partnerships and Future Plans
The battery manufacturer has secured partnerships with automotive leaders General Motors and Stellantis, aiming to build battery factories across North America. A key agreement with General Motors involves the production of cylindrical and prismatic batteries, vital for the next generation of electric transportation. This collaboration alone promises an annual production capacity of 20GWh, a substantial boost to the industry’s battery supply.
In collaboration with Stellantis, Samsung SDI is undertaking the Starplus Energy joint venture to build two factories with capacities of 33GWh and 34GWh. These efforts reflect Samsung SDI’s commitment to satisfying the explosive demand for EV batteries, with plans to start operations as quickly as possible.
Moreover, the company is gearing up to lead the market by starting production of solid-state batteries in 2027, a move that could revolutionize EV technologies with batteries offering higher energy density and enhanced safety.
Competitive Landscape
The push for expansion is not unique to Samsung SDI. South Korean rivals SK On and LG Energy Solution are also aggressively increasing their North American production capacities. SK On, through its partnership with Ford via BlueOval SK, is in the process of setting up three factories, with plans for two additional ones, aiming for a collective annual capacity of 150GWh.
The EV battery factory expansion of Samsung SDI in North America signifies the robust competition within the EV battery sector. As Samsung SDI, along with SK On and LG Energy Solution, accelerates its efforts, the outlook for electric transportation in North America is increasingly optimistic.
Image Source: The Korea Herald
