Samsung SDI Targets $1.3 Billion Battery Facility To Be Developed in Malaysia

Samsung SDI will invest $1.3 billion to develop a second battery plant for cylinder-type cells in Malaysia and start mass manufacturing in 2024.

Samsung SDI Co. to Build Second Battery Factory in Malaysia

Samsung SDI Co. of South Korea will construct a second battery factory in Malaysia to increase the output of cylinder-type cells used in electronic gadgets and electric cars.

The facility will create so-called 21700 batteries, which refer to a cell that is 21 millimeters wide and 70 millimeters long. The business will invest 1.7 trillion won ($1.3 billion) in the facility to "respond to rising demand for cylinder-type batteries," it said in a statement. In 2024, mass manufacturing will begin.

The new facility, which is expected to begin operation in 2025, will produce some 800 million battery cells a year.

Samsung SDI Co. (South Korea) President and Chief Executive Officer Yoon Ho Choi said the new investment would create some 1,300 jobs.

According to the release, Yoonho Choi remarked during a groundbreaking ceremony in Seremban that the new factory would be a "starting point" for Samsung SDI to become a global battery industry leader by 2030. Aminuddin Harun, the chief minister of Negeri Sembilan, said the investment by Samsung would increase employment and business prospects for regional businesses.

Through June of this year, Samsung SDI, which provides batteries to BMW AG and Volkswagen AG, had a 5% share of the worldwide battery market. According to Seoul-based SNE Research, that places it sixth behind industry leaders Contemporary Amperex Technology Co. Ltd. with 34 percent and LG Energy Solution Ltd. with 14 percent.

In May, Samsung SDI and Stellantis NV announced plans to construct Indiana's $2.5 billion battery facility, the company's first in the US.

Samsung SDI is Reportedly Building a Test Line for Tesla's Cylindrical 4680-Type Battery Cells

According to a source from South Korea, in June, Samsung SDI is setting up a test manufacturing line for Tesla's cylindrical 4680-type battery cells.

Samsung SDI would reportedly construct a pilot line at its Cheonan factory to test the technology, according to The Elec.

The South Korean business is reportedly working on at least two variations of the battery cell, including the 4680 (46 mm in diameter and 80 mm tall) and a shorter one between 40 mm and 60 mm long.

As cited in Inside EVs, The Elec speculates that BMW, one of Samsung SDI's major EV battery clients, may employ the shorter cells. Instead of prismatic lithium-ion cells, BMW intends to use cylindrical ones in its next electric cars. The story mentions that Samsung Electronics personnel recently paid a visit to BMW in Europe.

The pilot line for Samsung SDI is anticipated to have a production capacity of under 1 GWh annually. The next phase will be a rise of 8-12 GWh each year, albeit maybe not in South Korea.

In Seremban, Malaysia, where Samsung SDI's facility has been manufacturing cylindrical batteries since 2012, including 2170-type batteries from 2021, the report claims that an extensive production line would likely be constructed.

Cylindrical 4680-type batteries are gaining popularity. Tesla makes 4680-type battery cells in-house in the US, while Panasonic acknowledges it was requested to speed up research and supplied Tesla samples. Panasonic's 4680 cell series manufacturing will begin next fiscal year between April 1, 2023, and March 31, 2024.