To Cope with Spike in Battery Demand
Samsung SDI will expand its electric vehicle battery pack factory near Detroit, the United States by investing US$62.7 million. The move is intended to meet a spike in electric car battery orders from U.S. automakers.
According to industry sources on Nov. 29, Samsung SDI's U.S. subsidiary will expand its EV battery pack plant in Auburn Hills, Michigan on a massive scale. Auburn Hills is a 40-minute drive from Detroit, the center of world automotive manufacturing. Samsung SDI will receive about US$10 million in subsidies for the investment as well. Auburn Hills is said to give property tax and education tax breaks to companies in the area.
This move is closely related to the U.S. government's move to raise tariff barriers against imported cars. President Trump said that he had ordered U.S. government authorities to consider slapping high tariffs on imported cars to prevent the shutdown of GM factories in the U.S.
"The U.S. light truck business is popular because of a 25-percent chicken tax imposed on imported light trucks," President Trump wrote on his Twitter. “If the U.S. applies high tariffs to imported cars, more cars will be made in the U.S. and GM will not shut down factories. The chicken tax was named based on the fact that the United States imposed a tariff of 25 percent on imported light trucks in response to the fact that France and Germany have levied tariffs on U.S. chickens since 1964.