Samsung SDI is planning to spend up to 2 trillion won in its battery business this year, TheElec has learned.
This will be a 42% increase from the 1.4 trillion won it spent in 2020. It will be larger than the 1.7 trillion won it spent in 2019.
In March, Samsung SDI had faced criticism from some shareholders that it was spending too conservatively. It remains to be seen whether the Korean firm, starting with the 2 trillion won this year, will start spending aggressively to expand its battery business.
This year, Samsung SDI has internally decided to spend 1.5 trillion won in its electric vehicle battery and energy storage system businesses. It is mulling over how much to spend on small batteries, but it will likely decided on around 400 billion won.
The funds will be spent on expanding its factories in Goed, Hungary and Tianjin, China. It will also be used in its factory in Seremban, Malaysia, which it is currently expanding.
However, spending will likely be focused on the plant at Goed. Samsung SDI is building its second factory there, which will have double the capacity of the first factory. Second factory will manufacture Gen 5 batteries that has increased energy density thanks to use of new materials and production methods. The second factory will have seven production lines and at least 10 assembly lines. It will be manufacture 12 million prismatic battery per month.
Seremban and Tianjin will focus on cylinder batteries. Samsung SDI will spend 200 billion won at the factory in Seremban. It will have a new 21700 cylinder battery line.
However, the 2 trillion won doesn’t include its budget for the US, which it is considering to expand into. Samsung SDI will likely set a budget for the US once it finalize its decision to expand there.
The key on Samsung SDI’s US spending plan will be how successful US electric car firm Rivian, its battery customer, is.