Samsung SDI is said to be considering the construction of two battery plants in Xian, China, amid expectations of the rising demand for electric vehicles (EV) and the Chinese government’s planned abolishment of subsidies for EV makers and their suppliers in 2020.
Local media outlets in China reported Saturday that Samsung SDI is considering the establishment of two EV battery plants in Xian, investing 10.5 billion yuan (around 1.7 trillion won) to build five production lines on a 160,000-square-meter-wide area producing batteries with the capacity of 60Ah.
“It is true that we are considering the construction of battery plants in China,” the firm said. “Yet, details regarding the scale of investment and the area haven’t been confirmed.” The South Korean battery manufacturer currently has three EV battery plants in Ulsan, Xian, and Hungary, each with the production capacity of 60,000 units, 30,000 units, and 50,000 units, respectively.
The company’s latest decision seems to be aimed at taking the lead in competition with battery makers in China, which will get more intense when the government removes its subsidies for EV manufacturers in 2020. Beijing previously provided subsidies for the country’s vehicles equipped with batteries made in China, which were almost half the price tag of vehicles, putting South Korean battery makers at a disadvantage in the market.
Jae-Hee Kim email@example.com