Samsung SDI, which has been restructuring its battery materials business and strengthening its capabilities in battery cell manufacturing, is now actively investing in cathode materials. The company’s shift in focus has drawn significant attention as it departs from its previous strategy of streamlining the battery materials business and underscores its commitment to advancing in the cathode materials sector.
According to industry sources on Nov. 30, Samsung SDI’s wholly-owned cathode materials subsidiary, STM, has recently announced a 412.5 billion won (US$317.06 million) investment to establish a new production line for cathode materials. STM had previously expanded its cathode materials production line by investing 150 billion won through a rights offering in 2021, and it further increased its investment by 48.15 billion won last year to expand the line.
Established in 2011, STM is a joint venture between Samsung Fine Chemicals and Japan’s Toda Kogyo. The Japanese company has entered into a licensing agreement for nickel-cobalt-manganese (NCM) patents with the United States’ Argonne National Laboratory, which holds a substantial number of patents related to secondary battery cathode and anode materials.
However, in 2015, when Samsung Group sold its petrochemical affiliate, the battery material division of Samsung Fine Chemicals and STM was transferred to Samsung SDI. Currently, STM is wholly owned by Samsung SDI. The revenue, which was a mere 27.2 billion won in 2015, has increased by more than fivefold to 1.01 trillion won in 2022. Out of this, the revenue generated from Samsung SDI amounts to 627.6 billion won, marking an approximately threefold increase compared to the previous year’s figure of 184.9 billion won.
In the market, the current production capacity of STM is estimated to be in the range of 25,000 to 30,000 tons. With this recent investment, it is anticipated that the production capacity will expand to a range of 65,000 to 70,000 tons.
In 2006, Samsung Group sold the cathode material business that was held by Cheil Industries to EcoPro. EcoPro began its operations by acquiring the cathode material technology and facilities from Cheil Industries.
Subsequently, in 2014, Samsung SDI withdrew from the plasma display panel (PDP) business to concentrate on its battery operations. As part of this strategic shift, the company absorbed and merged with the materials division of Cheil Industries.
Continuing the strategic moves, in 2020 Samsung SDI established a joint venture named EcoPro EM with EcoPro’s cathode material subsidiary, EcoPro BM. All nickel-cobalt-aluminum (NCA) cathode materials produced in the venture are exclusively supplied to Samsung SDI. With the completion of the CAM7 factory with a capacity of 54,000 tons last year, the annual production capacity for battery cathode materials has reached 90,000 tons in total.
After restructuring its secondary battery materials business, Samsung SDI has actively re-engaged in the cathode materials sector, aiming to enhance supply chain diversification for stable supply management and improve cost competitiveness through vertical integration.