Samsung SDI announced plans to develop its own domestic electric vehicle battery factory apart from its current joint ventures in the United States, Pulse reports, citing the South Korean battery giant’s Chief Executive.
Samsung prepares to develop a standalone local factory
On Wednesday, Samsung SDI CEO Choi Yoon-ho reportedly told the media following the company’s shareholders‘ meeting in Seoul that the company plans to expand joint ventures and prepare to build its own battery factory in the US.
“As the EV battery market is expected to continue growing, we plan to expand JVs and prepare for establishing our standalone factory.”
Samsung SDI CEO Choi Yoon-ho
The planned project would be Samsung’s first-ever wholly-owned EV battery factory in the United States, potentially enabling the company to better compete in the electric vehicle market. In addition, it will also allow Samsung SDI to supply batteries to other prospective OEMs in the country.
Current JVs in the US
In hindsight, Samsung SDI announced an almost $2 billion battery joint venture with Stellantis in Indiana in 2022. It gave the South Korean battery giant a 51% stake in the JV, which has an initial production capacity of 34 GWh annually.
According to CEO Choi, its JV battery factory with Stellantis is already ready to kick off mass production.
“We are fully prepared to start mass production at the earliest possible time. The specific start date will be shared once finalized with our customers.“
Samsung SDI CEO Choi Yoon-ho
It also has another joint venture with American legacy automaker General Motors in the same state.
The Samsung SDI boss also shared some key plans for its JV battery factory with GM, including the imminent prismatic and cylindrical battery production.
”We have been preparing to produce both prismatic and cylindrical batteries simultaneously since the signing of the memorandum of understanding (MOU) and the plan is still ongoing.”
Samsung SDI CEO Choi Yoon-ho
On March 6, CEO Choi also asserted that the company could finally mass-produce 46mm cylindrical batteries by early 2025.
Solid-state battery plans
Samsung SDI CEO Choi Yoon-ho also said that the company aims to kick off the mass production of its innovative solid-state batteries by 2027.
“We believe we excel and lead in the solid-state battery field.”
Samsung SDI CEO Choi Yoon-ho
The company has also apparently established a pilot line for these solid-state batteries in Suwon in 2023, enabling it to roll out samples to electric automakers for evaluation.
“We set up a pilot line for solid-state batteries in Suwon last year and are currently supplying samples to multiple finished carmakers for evaluation. This year, we will continue to progress smoothly with mass production by establishing the core material supply chain and securing production capabilities for solid-state batteries.”
Samsung SDI CEO Choi Yoon-ho
Lastly, the Chief Executive has also answered shareholders’ concerns over the company’s insufficient dividends and low stock price.
“We will continue the existing shareholder return policy, including basic dividends, until the end of this year, and prepare new policies according to the situation next year.”
Samsung SDI CEO Choi Yoon-ho
The shareholders agreed to provide a 1,000 won ($0.75) dividend per common share and 1,050 won per preferred share.
Samsung SDI’s expansion efforts in the US are crucial for the company and its customers to gain eligibility for federal tax credits of up to $7,500.
