According to foreign media reports, Samsung SDI has decided to build a new lithium electronic battery factory for electric vehicles in the United States, and construction is expected to begin in 2023 and start production in 2025.
According to South Korean media TheElec, details of the plan will be finalised within this year. However, Samsung SDI has not yet decided on the location of the new plant or whether to form a joint venture to advance the plan.
Samsung SDI is likely to set up a joint venture for the new plant and is now in talks with a number of car companies about potential joint ventures. 'Nothing has been decided yet, 'said a spokesman for Samsung SDI. In June, Jun Young-hyun, the company's chief executive, said he was considering entering the US market. Its South Korean competitors LG Energy Solutions and SK Innovation have set up plants in the United States.
This will be Samsung SDI's first US battery factory, which previously imported cells and is then responsible for assembling modules and battery packs and other follow-up processes. Samsung SDI is expanding into the United States because of a lot of demand in the market. The company's sales of batteries to customer Rivian are expected to be reflected in its profits in the second half of the year.
Building a plant in the United States will also give Samsung SDI tax incentives under the terms of the Biden administration's U.S.-Mexico-Canada Agreement. In the past, the United States has provided generous subsidies to foreign companies building manufacturing plants in the United States. LG Energy Solutions Michigan plants received $151 million in subsidies from the Obama administration in 2009. Considering that LG has invested $330 million in the plant, this is indeed a large subsidy.
There is a great demand for uninterruptible power supply (UPS) in the United States, which means that Samsung SDI can make full use of its NCM battery with high power output.
