Samsung SDI will complete construction of its electric vehicle battery plant in Hungary in July, two months earlier than scheduled. It is the nation’s first European hub to supply EV batteries across the region.
According to Samsung SDI on April 13, the company will complete the plant in Hungary in July, bring in equipment in order, receive approval from the Hungarian government and start operation in the second half of next year.
With an investment of 400 billion won (US$352.73 million), the new plant will sit on a 330,000 square meter site that was used as its plant to manufacture plasma display panels (PDP). Samsung SDI will build a three-legged global EV battery production system, along with plants in Ulsan in South Korea and Xian in China, and secure a system that can efficiently target the global EV market.
Total output will rise to 150,000 units per year including batteries to build 60,000 EV units from Ulsan and 40,000 units from Xian
As Hungary is home to the production of Europe’s major finished carmakers such as Volkswagen, BMW, Mercedes-Benz and Audi, the new factory is also expected to allow Samsung SDI to save logistics costs and respond to customer needs more promptly.
Samsung SDI is accelerating the operation of its European production hub in order to gain a foothold in Europe to overcome difficulties in its EV battery business in China caused by the U.S. Terminal High Altitude Area Defense (THAAD) deployment and other unfavorable factors, including the Galaxy Note 7 fiasco last year. The company has also secured European automakers as its customer companies.