Highlights: On July 6, 2026, Samsung SDI disclosed a regulatory filing on July 3, announcing an investment of approximately KRW 16 trillion (approx. RMB 88 billion) in its Ulsan plant by 2040 to build a large-scale production site for all-solid-state batteries, LFP batteries for ESS, and sodium-ion batteries. One day earlier (July 2), the company had announced a KRW 9 trillion investment in its Cheonan plant to construct a mother line for next-generation battery technology verification and R&D facilities. The combined investment of KRW 25 trillion spans a period of up to 14 years, lasting until 2040.
[Seoul/Ulsan/Cheonan, July 6, 2026] Samsung SDI disclosed a regulatory filing on July 3, announcing an investment of approximately KRW 16 trillion (approx. RMB 88 billion) in its Ulsan plant by 2040 to build a large-scale production site for all-solid-state batteries, LFP batteries for ESS, and sodium-ion batteries. One day earlier (July 2), the company had announced a KRW 9 trillion investment in its Cheonan plant to construct a mother line for next-generation battery technology verification and R&D facilities. The combined investment of KRW 25 trillion spans a period of up to 14 years, lasting until 2040.
This investment blueprint was officially unveiled on July 3 at the "National Report on the Vision for Advanced Industry Development in the Yeongnam Region" hosted by President Lee Jae-myung in Jinju, Gyeongsangnam-do. Samsung Electronics President Roh Tae-moon, representing Samsung Group, announced that the group would invest KRW 60 trillion in the Yeongnam region to create a manufacturing ecosystem centered on physical AI and robotics, with Samsung SDI's KRW 16 trillion Ulsan investment as a core component.
I. Investment Details and Strategic Layout
1. Ulsan Site: Core Hub for Next-Generation Battery Mass Production
The Ulsan plant will undertake large-scale mass production of Samsung SDI's next-generation batteries, focusing on three major product lines:
Chart-1: Samsung SDI's Three Major Product Lines
Samsung SDI emphasized that this investment will secure its position as a global manufacturing base for next-generation batteries. The company plans to start mass production of all-solid-state batteries in H2 2027 and has already built a 6,500 m² "S-Line" pilot production line at the SDI Research Institute in Suwon, providing samples to five major global OEM clients for performance verification.
2. Cheonan Site: R&D and Verification Center for Next-Generation Batteries
The Cheonan plant will be positioned as Samsung SDI's global mother factory, with core functions including:
Mother Line: Used to validate next-generation battery technology and ensure process reliability before mass production.
DryEV: Pilot line for dry electrode technology, aimed at breaking through the cost bottleneck of conventional wet electrode manufacturing and improving production efficiency.
Supporting R&D Facilities: Enable ongoing development of cutting-edge technologies such as all-solid-state batteries and 46-series large cylindrical batteries.
The Cheonan plant previously undertook the construction of Samsung SDI's 4680 large cylindrical battery test line, with a planned annual capacity of 1 GWh. Once testing proceeds smoothly, mass production will shift to the Malaysia facility (planned capacity: 8–12 GWh).
3. Dual-Track Strategy: Separation of R&D and Mass Production
Chart-2: Samsung SDI Sites
This layout reflects Samsung SDI's phased advancement strategy of "R&D first, mass production later": Cheonan is responsible for technology maturity and process validation, while Ulsan handles large-scale production and cost optimization.
II. In-Depth Analysis: Why Place This Bet Now?
1. Investment Background: From the "EV Chasm" to the "AI Energy Revolution"
The timing of Samsung SDI's large-scale investment is highly strategic.
1.1 Short-Term Pressure
From 2024 to 2025, the global EV market encountered a "chasm," and Samsung SDI's performance was under pressure. In 2024, operating profit was only KRW 363.3 billion, a YoY plunge of 76.5%; 2025 saw its first quarterly loss in seven years (Q4 operating loss of KRW 256.7 billion).
1.2 Long-Term Opportunity
The surge in power demand from AI data centers is driving high-speed growth in the ESS market. SNE Research forecasts that the global ESS market will grow from 235 GWh in 2025 to 618 GWh in 2035, a 163% increase. Samsung SDI's Q1 2026 financial report shows that demand for power-related batteries such as ESS, UPS, and BBU rose sharply by 13% YoY, becoming the core driver of earnings improvement.
1.3 Strategic Assessment
The company views 2026 as the "first year of the turnaround," achieving short-term earnings recovery through the ESS business and securing medium- and long-term technology leadership through all-solid-state batteries.
2. Technology Roadmap: An All-In Bet on Sulphide-Based All-Solid-State Batteries
Samsung SDI has chosen the sulphide-based solid electrolyte route, which currently presents the highest technical difficulty but the greatest performance potential.
2.1 Technical Advantages
Ionic conductivity is closest to that of liquid electrolytes, supporting high power output.
Energy density can reach 900Wh/L (over 40% higher than existing products)
9-minute fast charging from 8% to 80%
Supports a driving range of 1,000 km
2.2 Technical Challenges
Sulphide readily reacts with moisture in the air to produce hydrogen sulphide gas, requiring a strictly dry environment
High solid-solid interface impedance requires ultra-high-pressure pressing processes
Manufacturing cost is estimated to be over 400 times higher than that of traditional lithium batteries
Samsung SDI has broken through some bottlenecks through Anode-less technology and Roll Press process conversion. In 2025, it will switch the pressing process from traditional WIP (isostatic pressing) to Roll Press, which is more suitable for mass production.
3. Application Scenarios: From EVs to Physical AI
Samsung SDI is expanding all-solid-state battery applications from traditional EVs to the Physical AI domain:
Humanoid robots: First public demonstration of pouch-type all-solid-state battery samples in March 2026, targeting mass production in H2 2027
Mobile robots/industrial robots: High energy density supports long-duration autonomous operation
Urban Air Mobility (UAM): High safety meets aviation-grade requirements
High-Altitude Platform Station (HAPS): Stable power supply in extreme environments
This strategic shift reflects Samsung Group's full commitment to the "AI + robotics" ecosystem. The Group plans to invest 60 trillion won in the Yeongnam region, with Samsung Electronics and SDS investing 19 trillion won to build robotics and AI data centers, and Samsung SDI's 16 trillion won battery investment serving as the hardware foundation.
III. Comparison of Competitive Landscape in South Korea's Solid-State Battery Industry
Chart-3: Comparison of All-Solid-State Battery Roadmaps of Three Major South Korean Battery Enterprises
Chart-4: Global Competitive Landscape
IV. Analysis of Key Competitive Factors
1. Mass Production Time Window
Samsung SDI's target of H2 2027 holds an absolute leading position globally
If successfully achieved, it will gain a 3-5 year technology monopoly period, potentially defining industry standards.
However, the risk is that the penetration rate of all-solid-state batteries is expected to be only 4% by 2030, only surpassing 2% by 2032.
2. Cost Reduction Curve
Currently, the raw material cost of sulphide solid electrolyte is 50-60 times that of liquid electrolyte.
Samsung SDI expects that through large-scale production, it can reduce this to 10-20 times.
Even so, initial products can only be installed in high-end EVs and robots, with mass market penetration requiring a longer time.
3. Client Verification Progress
Samsung SDI has already provided samples to BMW, Hyundai Motor, and others, and plans to conduct vehicle installation tests by the end of 2026.
LG Energy Solution maintains technical ties with Volkswagen Group (through QuantumScape).
SK On collaborates with Solid Power, but customer validation progress lags relatively behind.
4. Supply Chain Localization
Samsung SDI is committed to in-house production of core materials to reduce external dependence.
Approximately 200 billion won was raised through a rights issue in March 2025, earmarked for the construction of an all-solid-state battery production line.
V. Market Outlook
1. Financial Impact on Samsung SDI
Short-term Pressure: Large-scale CAPEX will intensify the financial burden in 2026-2027. The company has suspended cash dividends for two consecutive years (2025-2027) to concentrate resources on future investments.
Mid-term Inflection Point: The securities industry expects to achieve quarterly turnaround in H2 2026, with performance improving significantly in 2027 as the US Stellantis/GM joint venture plants begin production and all-solid-state batteries enter mass production.
Long-term Value: If the mass production of all-solid-state batteries succeeds in 2027, the company is poised to transform from a traditional battery manufacturer into a next-generation energy solution provider, leading to a restructuring of its valuation system.
2. Impact on the South Korean Battery Industry
Regional Balance: Investments in Ulsan (Yeongnam) and Cheonan (Chungcheong) will drive the development of battery industry clusters in southeastern and central South Korea, reducing reliance on the capital region.
Technological Sovereignty: Establishing a complete all-solid-state battery industry chain within South Korea will lower dependence on Chinese raw materials and equipment.
Job Creation: The Samsung Group expects to create 200,000 quality jobs in the Yeongnam region alone.
3. Impact on the Global Battery Landscape
Standard-Setting Power: If Samsung SDI takes the lead in commercializing all-solid-state batteries, South Korea could secure a dominant position in shaping global battery technology standards.
China Challenge: The Chinese government has invested over 100 billion won in supporting all-solid-state battery R&D, with enterprises like CATL and BYD accelerating their efforts, though their technological routes are becoming more pragmatic (transitioning via semi-solid-state).
Japan’s Response: Despite deep technological expertise, Toyota and Panasonic have adopted a conservative stance on commercialization, potentially missing early market opportunities.
VI. Risks and Challenges
Technical Risks: Core technology bottlenecks such as solid-solid interface issues and cycle life (currently around 1,000 cycles, whereas EVs require more than 2,000 cycles) have not been fully overcome.
Cost Risks: Extremely high initial manufacturing costs may limit the product to the high-end market, with economies of scale forming slowly.
Competitive Risks: Chinese enterprises have already achieved mass production in the semi-solid-state battery field (e.g., NIO’s car models equipped with semi-solid-state batteries) and may seize the market through incremental innovation.
Policy Risk: Changes in US IRA policies, EU battery regulations, and other trade policies may affect the global supply chain layout
Performance Risk: In 2026, the company is expected to still have an operating loss of about 967 billion won. If ESS business growth falls short of expectations or the mass production of all-solid-state batteries is delayed, financial pressure will further intensify
Conclusion
Samsung SDI's 25 trillion won investment plan is the largest-scale forward-looking layout in the history of South Korea's battery industry, reflecting the company's determination to transform from a "follower" to a "leader." Against the backdrop of a short-term slump in the EV market and the immaturity of all-solid-state battery technology, this "contrarian gamble" is fraught with risks but also holds significant opportunities.
VII. Key Periods
The end of 2026: BMW all-solid-state battery vehicle mounting test results
H2 2027: Whether the Ulsan all-solid-state battery mass production line will commence as scheduled
2028: Actual installations of all-solid-state batteries in the robot and EV fields
2030: Whether the market penetration rate of all-solid-state batteries reaches the industry expectations of 4%, while SMM expects less than 1%
If Samsung SDI can achieve its 2027 mass production target as planned, it will not only reshape the global competitiveness of South Korea's battery industry but also potentially redefine the energy standards for the entire NEV and robot industries. Conversely, if technical bottlenecks cannot be overcome or cost reductions fall short of expectations, this investment could also become a heavy burden dragging on the company's long-term development.
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