To Invest KRW1.7tn by 2025
Samsung SDI broke ground for a second battery production facility in Seremban, Malaysia on July 21. The company will invest a total of 1.7 trillion won phase-by-phase until 2025 to build the plant, which will start mass-production of PRiMX 21700 cylindrical batteries (21 mm X 70 mm) in 2024.
Samsung SDI’s decision to construct the second factory in Malaysia is intended to meet the rising demand for cylindrical batteries. The batteries from the new plant will be used in various applications ranging from electrical tools and micro-mobility to electric vehicles.
The plant will be operated by Samsung SDI Energy Malaysia (SDIEM), Samsung SDI's first overseas business entity established in Malaysia in 1991. SDIEM initially produced braun tubes before shifting to batteries in 2012.
Samsung SDI president and CEO Choi Yoon-ho said, “Today’s groundbreaking ceremony will serve as a starting point for realizing our vision to become a global top-tier company by 2030.” adding, “With successful completion and early stabilization of Plant 2, we will make SDIEM the center of the global battery industry.”
The global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion cells in 2027, showing an annual growth rate of 8% on average, as demand expands from electrical tools, micro-mobility to electric vehicles and energy storage systems.