Samsung SDI to build EV battery plant in US

Samsung SDI Co. plans to set up an electric vehicle (EV) battery plant in the US, joining South Korean battery producers’ move to gain ground in one of the world’s largest EV markets.

The company is likely to join hands with Stellantis N.V., a Dutch-domiciled multinational automaker, to launch a production joint venture in the US, industry watchers said.

“We will build an EV battery plant in the US,” said a Samsung SDI official on July 27. “It is inevitable to have production of EV parts there due to the US-Canada-Mexico Trade Agreement (USMCA), which will take effect in 2025,” the official added, referring to a free trade agreement among the three countries.

Currently, Samsung SDI operates battery manufacturing plants in Korea, Hungary and China. In the US, it runs a battery pack assembly line in the state of Michigan.

If it sets up a battery plant in the US, South Korea’s battery trio, including LG Energy Solution Ltd. and SK Innovation Co., would all have production facilities there.

Separately, Samsung SDI will supply its new rechargeable battery Gen 5 to automakers such as Germany’s BMW from the third quarter. Its Hungary plant is preparing for mass production of the Gen 5 that enables an EV to run over 600 kilometers (372.8 miles) on a single charge.

Global demand for batteries has been surging on the fast-growing EV markets. Samsung SDI’s EV battery business in the second quarter turned to black for the first time in six quarters.

The company’s total operating profit in the April-June period surged 184.4% to 295.2 billion won ($255.8 million) from a year earlier with a record high revenue of 3.3 trillion won.

Write to Hyung-Kyu Kim at khk@hankyung.com
Jongwoo Cheon edited this article.