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China to Benefit from New Car Battery Plant from Samsung SDI

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Published on : Oct 23, 2015

Samsung SDI, the South Korean car battery maker recently inaugurated its automotive battery plant in China. With this new car battery plant, Samsung SDI is planning to contribute further in the world’s biggest electric vehicle market. The plant started its operations in the month of September and has the capacity to manufacture batteries for 40,000 electric cars every year. The plant has the capability to handle the manufacture of EV batteries, battery cells, and modules. Samsung SDI, the first car battery maker in China, has established a world-class manufacturing business dedicated to car batteries. 

The company is planning to manufacture auto batters, not only for Chinese companies including Yutong but also for the global car-makers. Samsung SDI plans to primarily target Yutong, the well-known bus maker and China’s No.1 truck manufacturer, Foton. According to the sources, Samsung SDI is planning to invest around $600 mn by 2020 to expand its manufacturing base in China. With this, China aims to extend its automotive industry further. Cho Nam-seong, the CEO of Samsung SDI said that the company is planning to make their Xian plant as the center for EV batteries. 

Around 80,000 EV batteries were sold in China in 2014, about 160,000 batteries are expected to be sold this year, and 240,000 till 2016. Earlier this month, the Chinese government disclosed their plans to develop extended battery charging network for 5 mn fully electronic cars till 2020. Samsung SDI has plans to team-up with global car makers such as Bently, BMW, and Audi to expand its business in China and in the global market. For BMW, Samsung SDI is the only car battery supplier. Further, BMW is planning to use car batteries from Samsung SDI for their plug-in car models of 3rd and 7th series sedans, which are planned for release in 2016. Support from the Chinese government will prove to be beneficial for both, China automotive industry and Samsung SDI.