Samsung SDI’s battery spending in 2022 to exceed last year

Samsung SDI’s spending this year to expand its battery production capacity is expected to exceed that of 2021, TheElec has learned.

The South Korean battery maker is expected to especially focus on expanding its cylinder battery production capacity.

Samsung vice chairman Lee Jae-yong, the leader of the Samsung business group, strongly pushed the company’s cylinder battery and solid-state battery technologies during his visit to Europe earlier this year, where he me those at BMW.

The German car giant showed strong interest in Samsung SDI’s solid-state battery technology, while the South Korean company had been promoting the technology during its roadmap showcase to customers since last year, sources said.

Samsung SDI had spent around 2 trillion won on facilities last year and this year the figure is expected to be close to 3 trillion won, they added.

The company is expanding its second factory at Goed, Hungary; its joint venture with Stellantis is also expected to start building their factory.

Samsung SDI also announced a 1.7 trillion won spending plan in Malaysia where it will manufacture 4680 batteries with longer lengths.

The company had been for years considered behind in spending to compatriots LG Energy Solution and SK On.

This was because Samsung SDI considered cost competitiveness more important than profitability for the long term, the sources said.

Previous supplies of batteries to Volkswagen’s MEB platform had little margins comparatively, they added.