Samsung SDI has invested 5 billion won for shares in Philenergy, the battery equipment subsidiary of Philoptics.
Samsung will get 60,000 shares for 83,334 won per share. It will have a non-executive board member at Philenergy. An executive overseeing planning will take the seat, people familiar with the matter said.
The investment marks the second time that the South Korean battery maker is investing in its subcontractor. It previously formed a joint venture with anode maker EcoPro BM.
Samsung SDI was expanding its factory at Göd, Hungary. It is improving the first factory is planning to produce Gen 5 batteries that will use anode materials made of nickel, cobalt and aluminum (NCA). Nickel will account for over 80% of the material.
Samsung is also planning apply the stacking process there where the anode, electrolyte, separator and cathode are stacked together like stairs. Philenergy is the exclusive supplier of necessary equipment for the process.
Philenergy will likely secure a stable revenue stream going forward from the deeper partnership formed by Samsung SDI’s investment. It has already accumulated 110 billion won in orders from the Hungary factory. Samsung, in turn, will be able to protect its core production technologies and get a steady supplier of needed equipment.
Samsung SDI plans to invest in Hungary up to 2030. Its goal is to produce 18 million cells per month there by 2030. The first factory will produce 6 million cells and the second factory 12 million cells. It plans to invest a total of 1.2 trillion won in the factory.