Samsung SDI was preparing to expand its cylinder battery production, TheElec has learned.
Spending for the expansion will start in the second half of the year at the earliest.
Its factories in Seremban, Malaysia and Cheonan, South Korea will be targets.
Samsung SDI last invested in cylinder battery at Tianjin, China in 2019. The company spent 400 billion won for four production lines there.
It will likely spend a similar amount for its latest expansion.
Seremban will likely be the first target as the factory there has many old lines. Samsung SDI started cylinder battery production there in 2012.
The equipment used for mixing to formation has aged since then and is ready to be replaced.
Lines with low productivity are operating at the factory there, a person familiar with the matter said. Samsung SDI didn’t spend on cylinder battery production last year, and its is ripe to do so in 2021, they said.
There is currently a global shortage of cylinder battery. This is due to the high demand for wireless cleaners, e-mobility products and power tools.
However, Samsung SDI may choose to replace old lines but limit building new ones. Changing the production per minute (PPM) of old lines 200PPM to 300PPM itself will be a huge improvement in productivity.
Samsung SDI is thought to have an annual production rate of 1.8 billion cells for cylinder batteries as of 2020, according to the people.