Following LG Energy Solution and SK Innovation
Samsung SDI, one of the three major Korean battery makers, is planning to build a battery cell plant in the United States, following its rivals LG Energy Solution and SK Innovation.
Samsung SDI is reviewing a plan to break ground for a electric vehicle (EV) battery plant around 2022 for completion by July 2025. The implementation of the U.S.-Mexico-Canada (USMCA) Trade Agreement forces a battery maker to produce more than 75 percent of its batteries in the USMCA region by July 1, 2025 in order to ensure that EV manufacturers using its batteries are eligible for zero tariff benefits.
Samsung SDI is reportedly weighing its options -- expanding its battery assembly plant in Michigan or building a new plant in the southern U.S. Sunbelt. Samsung SDI operates a pack plant in Michigan.
The Sunbelt area is a stronghold of the Republican Party. It is home to automobile factories including those of Hyundai Motor, Kia Corp., and German makers BMW and Benz. BMW has maintained a partnership with Samsung SDI since 2010 when the latter first started its square battery business.
Meanwhile, Samsung SDI is planning to announce its investment plan in the United States as early as the second half of 2021.