Samsung SDI to invest US$1.3B in second battery production facility in Malaysia

Samsung SDI broke ground on a second battery production facility in Seremban, Malaysia. With a total of 1.7 trillion won (US$1.3 billion) investment phase-by-phase until completion in 2025, Plant 2 at Samsung SDI Energy Malaysia (SDIEM) will start mass-production of PRiMX 21700 cylindrical batteries (21mm X 70 mm) in 2024.

Samsung SDI’s decision to construct the second factory in Malaysia comes as a strategy to meet the rising demand for cylindrical batteries recently. The batteries from the Plant 2 will be used in various applications ranging from electrical tools, micro-mobility to electric vehicles.

On the transportation side, Samsung SDI generally positions its small cylindrical batteries for light electric vehicles (LEVs). The 21700 50E consisting of NCA V2 and SCN V2 was the only solution for Samsung SDI up until 2020. But, given the fast-growing LEV market, Samsung SDI decided to provide high capacity 21700 53G, consisting of SCN V3, starting from 2022.

Additionally, Samsung SDI plans to launch 50GB, a new cell for higher safety in 2022, following 50E. 100W coil tests conducted by Samsung SDI have verified that 21700 50GB ensures advanced heat dissipation and mitigates heat propagation risks significantly. In other words, Samsung SDI says, the LEV batteries guarantee both high capacity energy storage and safety.

For larger EVs, Samsung SDI is introducing the fifth generation of its prismatic technology.

Established in 1991, SDIEM is the first overseas business entity of Samsung SDI. The company started off with producing Braun tubes in its early years before shifting to batteries in 2012.

The global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion cells in 2027, showing an annual growth rate of 8% on average, as demand expands from electrical tools, micro-mobility to electric vehicles and energy storage systems.

Previous articleBattery maker EVE Energy and partners set up lithium salt JV in Hunan
Next articleCATL and Ford announce global strategic cooperation to promote EVs worldwide