Samsung SDI is pushing to establish joint ventures with two global automakers for electric vehicle battery plants in the United States, respectively.
The total cost of the two joint ventures is estimated at $8 billion, of which Samsung SDI is expected to invest $4 billion. Some analysts believe that this massive investment plan of Samsung Group indicates that the conservative attitude of Samsung Group towards the electric vehicle battery business is changing.
They plan to build a plant with an annual capacity of 50 GWh to meet the demand for power batteries for 670,000 electric vehicles with a range of 500 km. To do so, Samsung SDI and GM will each invest about $2 billion.
Samsung SDI’s lithium batteries
GM has previously purchased soft-pack batteries from LG Energy Solution, but Samsung SDI does not produce such batteries. Samsung mainly specializes in prismatic and cylindrical batteries. This could signal a change in GM’s battery form factor strategy.
The type of batteries to be produced at the joint plant has not yet been determined. However, some industry insiders speculate that the plant will launch square batteries.
In addition, Samsung SDI is pushing for a separate joint venture with Volvo, which Korean media said will be announced in December.
The joint venture is said to be similar in size to the Samsung-GM joint venture, with each company investing about $2 billion in the joint plant to produce 50GWh of batteries per year.
According to Volvo’s strategy, the brand will use cylindrical batteries in the future, while the EX90 will use square batteries, and Samsung SDI is well-positioned to produce both types of batteries. Samsung SDI will now partner with the world’s top three automakers — General Motors, Volvo and Stellantis.
