Samsung SDI to procure EV battery component from KDL

Samsung SDI will procure components needed for electric vehicle (EV) batteries from China’s KDL, people familiar with the matter said.

KDL recently announced that it was forming a EV battery component factory in Hungary with an investment of 30 million euros.

People familiar with the matter said the announcement means the Chinese firm has won Samsung SDI as a client. Samsung SDI has a factory in Goed, Hungary, which it is expanding.

Samsung SDI have previously secured battery components from South Korean suppliers such as Sangsin EDP and Shinheung SEC. These suppliers provided metal cans and cathode and anode terminals.

Sangsin EDP built a factory in Hungary in 2017; Shinheung SEC in 2018. These companies will now be pressured to win orders due to KDL’s entry into the supply chain.

However, Samsung SDI is planning to expand its battery production capacity at Hungary up to 2030, so the South Korean suppliers won’t lose orders in the short-term.

KDL has procured another large customer in Samsung SDI after CATL. 

KDL is planning to invest 60 million euros for a factory in Germany for CATL. It is planing another at Sweden with an investment of 50 million euros for Northvolt.

Samsung SDI is placing orders for its second factory in Goed. The line will likely begin operations in late 2021. 

The second factory will have seven production lines. It will have over ten assembly lines. The factory is expected to have a production capacity of 12 million cells per month when completed. The first factory’s capacity stands at 6 million cells. Samsung SDI will be able to produce over 20GWh of batteries per year when both factories go live.