Wonik PNE, formerly PNE Solution, will be supplying formation equipment for cylinder batteries to Samsung SDI’s battery factory at Seremban, Malaysia, TheElec has learned.
The deal is likely worth tens of billions of wons. Samsung SDI is planning to spend around 200 billion won to manufacture cylinder batteries at the plant, which has a production capacity between 2 to 4GWh per year.
Wonik PNE previously supplied Samsung SDI with mostly equipment for prismatic batteries.
Wonik Holdings, since acquiring PNE Solution, has put in a lot of effort to win more orders from Samsung SDI, a person with direct knowledge of the matter said.
Wonik PNE is expected to win more orders for equipment used to manufacture cylinder batteries as there is currently a shortage of the battery type globally.
The Seremban plant begin manufacturing cylinder batteries in 2012. Samsung SDI Recently removed old lines at the plant that manufactured small pouch batteries. The new cylinder battery line will be built as replacement. Samsung SDI is planning to manufacture 21700 batteries.
Formation equipment put currents inside batteries that has finished assembly. It charges and discharges the batteries to bring them to life. The process takes over two weeks. As cylinder batteries are small and manufactured in large quantities, more formation equipment is needed. A formation equipment costs around 30 million won.
Wonik PNE will likely eye supplying more equipment to Samsung SDI’s factory at Goed, Hungary. Samsung SDI has recently finished upgrading the first factory and is building the second factory. The second factory has double the capacity of the first. It will also manufacture Gen 5 batteries, which Samsung SDI will be applying new materials and production methods for. The second factory has seven production lines and over ten assembly lines. It can produce 12 million cells of prismatic batteries per month.
Other equipment makers such as Kapjin and Hana Technology will also be looking to win more orders from Samsung SDI and the competition between the companies will be fierce, the person said.