Samsung SDI is planning to spend up to 200 billion won to expand its production capacity of cylinder batteries at its factory in Seremban, Malaysia.
The company is likely to manufacture 21700 batteries with a capacity of over a million cells per month, or 2GWh per year, through the new production line, people familiar with the matter said.
This is the first time Samsung SDI is spending in expanding its cylinder battery production since 2019, when it invested in its factory at Tianjin, China to manufacture cylinder batteries.
Samsung SDI has increased its ppm from 200 to 300 for the production at Seremban.
The company is also considering additional spending to increase production capacity even further by up to 4GWh per year.
Samsung SDI began manufacturing cylinder batteries at Seremban in 2012. It recently removed an aged production line for small pouch batteries there.
The new cylinder battery line will be built in the remaining empty space.
The equipment used for the aged production line for small pouch batteries are likely to be transferred to Tianjin.
There is currently a global shortage in cylinder batteries. Demand from power tools, wireless cleaners, and e-mobility products are on the rise. Tesla’s use of cylinder batteries for its electric vehicle and energy storage system is also causing the high demand for the batteries.