Samsung SDI, the battery-making unit of Samsung Group, will invest 1 trillion won in its electric vehicle (EV) battery business this year, up more than 40 percent from last year. Having decided to nurture the mid and large secondary battery business into one of its future growth engine businesses, Samsung SDI plans to realize economies of scale to make the business profitable at an earlier date.
Since the company sold its chemical business unit, it is projected to concentrate on its secondary battery business, especially batteries for EVs.
Last year, Samsung SDI sank 528.8 billion won into the energy solution business, including battery manufacturing, while making a separate 153.4 billion won investment in the chemical and electronic materials sector.
The increased investment is expected to flow into expanding its manufacturing facilities in Ulsan and Xian, China and building a new facility in Europe. The company produces batteries that can power 200,000 EVs at its Ulsan and Xian factories.
The Xian factory, dedicated to the production of batteries, is a joint venture of Samsung SDI, Anqing Huanxin Group and Xi'an Gaoke Group. It started mass-producing batteries last October.
Samsung SDI is pushing to establish a new production facility in Europe to stay closer to the production facilities of global car makers.
