Samsung SDI Co., Ltd. held a ceremony to mark the groundbreaking of a second battery production facility in Seremban, Malaysia on July 21. Specifically, Plant 2 at Samsung SDI Energy Malaysia (SDIEM) will be equipped with state-of-art and innovative production lines.
The company aims to rollout 1.7 trillion won (US$1.3 billion) in total investment, phase-by-phase until the plant’s completion in 2025. Moreover, the new battery plant will start mass production of PRiMX 21700 cylindrical batteries (21×70mm) in 2024.
Mainly, the construction of the second factory in Malaysia comes amid the rising demand for cylindrical batteries. The batteries from Plant 2 will be used in various applications ranging from electrical tools, micro-mobility to electric vehicles.
The groundbreaking ceremony of Plant 2 at SDIEM was attended by Samsung SDI’s President and CEO YOONHO CHOI; the Menteri Besar of Negeri Sembilan, Dato’ Seri Haji Aminuddin bin Harun State Legislatures of Negeri Sembilan; Ambassador of the Republic of Korea to Malaysia, Lee Chi-beom; and many representatives from SDIEM’s partner companies, including POSCO Chemical, W-SCOPE, and Iljin Materials.
Global Top Tier Company
YOONHO CHOI said in his opening remarks, “Today’s groundbreaking ceremony will serve as a starting point for realizing our vision to become a Global Top Tier Company by 2030. With successful completion and early stabilization of Plant 2, we will make SDIEM the center of the global battery industry.”
CHOI added, “With the support from the Malaysian state government and partner companies for best quality, we will be able to realize the vision much faster.”
During the congratulatory remarks, the Menteri Besar of Negeri Sembilan, Negeri Sembilan Menteri Besar said, “Investments from high-impact industries, such as Samsung SDIEM are integral to our vision of driving robust economic growth in Malaysia and Negeri Sembilan, which is outlined in our Malaysia Vision Valley 2.0 plan. Not only is this testament to our economic potential in Negeri Sembilan, but also the investment friendly policies implemented by the State. Samsung SDIEM’s investment to be the pioneer in electric vehicle (EV) battery cell manufacturing in Seremban will continue to create jobs for the youth and spur more opportunities for local businesses.”
The global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion cells in 2027. This represents an annual growth rate of 8 percent on average. Demand from electrical tools, micro-mobility to electric vehicles and energy storage systems will spur this expansion.
SDIEM is the first overseas business entity of Samsung SDI and was established in1991. The company started off with producing braun tubes in its early years before shifting to batteries in 2012.