Samsung SDI to invest nearly $1 billion in its EV battery plant in Hungary
Samsung has its eyes fixed on the automotive segment knowing that demand for EV (electric vehicle) batteries is bound to increase as more carmakers become less reliant on fossil fuels. And in anticipation of higher demand for EV prismatic batteries, Samsung SDI is now reportedly planning to double the production capacity at its plant in Hungary by building a second EV prismatic battery factory.
This is all a part of Samsung’s alleged plan to establish itself as the dominant EV battery manufacturer in Europe. Renowned car manufacturers including Audi, BMW, and Volkswagen are now adjusting their long-term plans to include EVs, and at least Volkswagen is planning to switch from pouch-type batteries to prismatic batteries by 2030.
Samsung SDI reportedly wants to be a few steps ahead its competitors in terms of expertise, all the while ensuring that it has enough production capacity to capitalize on the increasing demand for prismatic batteries and become a key player in the segment.
Samsung SDI to invest $890 million in EV battery production lines this year
Industry watchers cited by Korea IT News claim that Samsung SDI is planning to make a huge investment of about $890 million with the purpose of adding four additional prismatic battery production lines at its facility in Hungary. This will increase the total of production lines to eight and will allow Samsung to manufacture roughly 1 million EV batteries every year.
As part of this $890 million investment, Samsung SDI will also reportedly start building a second EV battery factory in Hungary sometime in the first half of the year.
Production capacity aside, Samsung SDI will spend more resources towards increasing the quality of its prismatic EV batteries and minimize the defect rate, said an unnamed representative cited by the Korean media.Join the Discussion