Samsung SDI to build battery factory in Malaysia

South Korean company Samsung SDI Co. will build a second battery manufacturing plant in Malaysia to increase the production of cylindrical cells used for electric vehicles and electronic devices.

The company will spend 1.7 trillion won ($1.3 billion) on a plant that will produce what it calls 21,700 batteries with cells 21 millimeters wide and 70 millimeters long to “respond to growing demand for cylindrical batteries.” batteries,” the company said in a statement on Thursday. Mass production will start in 2024.

According to the announcement, the new plant will be the “starting point” for Samsung SDI to become the global battery market leader by 2030, CEO Yunho Choi said at the groundbreaking ceremony in Seremban. Samsung’s investment will create more jobs and opportunities for local companies, Negeri Sembilan Chief Minister Aminuddin Haroun said.

Samsung SDI, which supplies batteries to BMW AG and Volkswagen AG, had a 5% share of the global battery market this year through June. This places it in sixth place behind market leader Contemporary Amperex Technology Co. LLC with 34 percent and LG Energy Solution Ltd. by 14 percent, according to Seoul-based SNE Research.

In May, Samsung SDI announced plans to build its first battery manufacturing plant in the United States, a $2.5 billion plant in Indiana, in partnership with Stellantis NV.