Samsung to Strengthen Position as Major Manufacturer of Batteries

Samsung is seeking to take on LG Chem in its bid to emerge as one of the major manufacturers of lithium-ion battery cells for electric cars. BMW has already chosen Samsung’s SDI battery division to supply cells for its i3 model that is manufactured in Korea. Now, Samsung has announced that it will be investing at least 400 million won or USD 358 million in a new plant in Hungary for the manufacture of batteries. In July, Samsung had spent USD 450 million to acquire a stake in BYD, a Chinese car manufacturer that also makes and sells batteries for electric cars.

Based on what Samsung has divulged, the factory in Hungary will become operational in the second half of 2018 and when running at full capacity, can make cells for about 50,000 electric cars on an annual basis. The output of this factory could be used to cater to demand for fuel cells that will be used in other all-electric or plug-in hybrid cars from BMW. BMW is currently working on a new “i” model that is likely to be positioned between the i3 car which is meant to be used in the city and the i8 plug-in hybrid coupe. This vehicle is likely to be named the i5 and it might be a compact cross0ver-utility vehicle.

The new plant in Hungary will also help Samsung to compete on a more equitable basis with LG Chem, which had recently announced that it would be setting up a new factory in Poland. Both companies have been prompted to focus on the European markets in view of the disappointing sales for electric cars in China, in spite of considerable backing from the Chinese government.