Samsung SDI could use Chinese equipment to make new batteries

The company recently held a conference at its plant in Cheonan, South Korea, highlighting the plan to potential vendors for the project. A new report out of South Korea claims that Samsung SDI is considering sourcing equipment from Chinese vendors to establish the lithium iron phosphate battery production line.

Samsung SDI may start production by next year

Among the suppliers present at the meeting in Cheonan were Korean vendors Kapjin and Wonik that have long been suppliers to Samsung SDI. Lead Intelligence and Zhejiang Hangke were also present at the meeting.

The discussions were primarily with back-end equipment manufacturers. Samsung SDI is likely going to place orders for the manufacturing equipment this year with installation likely beginning next year. The report also suggests that Samsung SDI might build this battery production line at its plant in Ulsan.

It's not guaranteed as yet that Lead Intelligence and Zhejiang Hangke, the Chinese suppliers, will win the orders for the equipment but they are known to offer the equipment at aggressive pricing, thereby increasing their chances of getting the order. Hangke already works with several Korean battery manufacturers, including SK On and LG Energy Solutions.

Lithium iron phosphate battery manufacturing is largely dominated by Chinese battery makers. These batteries are widely being used for electric cars, including in the popular Tesla vehicles.