Samsung SDI Completes EV Battery Plant Construction in Hungary

2 days ago by Mark Kane 19

Samsung SDI Battery Factory In Hungary

Samsung SDI continues forward progress with its $358 million battery factory conversion in Hungary. In fact, the facility is now completed (that was quick – just under a year by our reckoning), and on schedule to start production in second quarter of 2018.

At Samsung SDI’s completion ceremony for the construction of its EV battery plant held on May 29, in Goed, Hungary, Samsung SDI President Jun Young-hyun (left) is explaining lithium ion battery material to Hungarian Prime Minister Viktor Orban (middle)

The company, which is seen as the only legitimate competition to LG Chem for 3rd party supply deals, intends to produce up to 50,000 battery packs annually for pure electric cars out of the new facility.

Samsung’s other two factories are located in Ulsan, South Korea and Xian, China.

One of the largest customers for Samsung SDI is currently BMW. Next year, the cells from Hungary will flow also to Audi.

“Samsung SDI celebrated the completion of construction of its EV battery plant in Goed, 30 kilometers north of Budapest, Hungary, on May 29 (Hungarian time). The ceremony was attended by about 150 officials, including Hungarian Prime Minister Viktor Orban, Samsung SDI President Jun Young-hyun, Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto and Korean Ambassador to Hungary Yim Geun-hyeong.

Sitting on a 330,000 square-meter site in Goed, the plant is capable of producing batteries for 50,000 electric vehicles annually with operations expected to begin in the second quarter of next year. The company will be able to not only save logistics costs, but also improve customer service in Europe. Samsung SDI’s former plasma display panel (PDP) plant has been transformed into a plant equipped with state-of-art technology of Samsung SDI to produce high-power and high-efficiency EV batteries. Through construction of Hungary plant, Samsung SDI sets up a global electric vehicle batteries production tripod with plants in Ulsan, South Korea and Xian, China.

Europe is leading the global EV market with its environment-friendly policy. The market for batteries, one of core parts of electric vehicles, is expanding fast alongside the EV market.”

Hungarian Prime Minister Viktor Orban said at the ceremony said:

“In the early 1990s, we met capitalism and encountered various kinds of companies and brands. We have learned that ‘Made in South Korea’ is a warranty check that guarantees quality of a product. Korea was good example to us indeed. We learned that this is the most important key for a diligent small country to build a strong economy and hold a firm position in the world market. Samsung learned from others but it has always walked its own path. Goed wanted Samsung SDI and Samsung SDI wanted to come back to Goed. That’s the reason for Hungarian government to support this project. I would like to thank Samsung SDI executives for choosing Hungary and Goed.”

Samsung SDI President Jun Young-hyun said:

“State-of-the-art technology of Samsung SDI will be applied to batteries to be made in this plant in Hungary. Batteries are one of the most important parts supplied to global car makers. I expect the plant to contribute much to the growth of the European electric vehicle market.”

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19 responses to "Samsung SDI Completes EV Battery Plant Construction in Hungary"

  1. Damocles Axe says:

    50,000 EV battery packs, or about 1/2 the electric cars BMW plans to make this year alone.

    Still seems the rest of the world is dragging its feet on EV car production….

    1. Fredrick Ramsden says:

      Makes me feel like moving to Europe. Don’t understand America wanting to continue with gas guzzlers and continue with environmental destruction. Status Status Status.

      1. laters says:

        I missed the part where Europe no longer builds or sells gasoline/diesel autos. Maybe you could send me the link.

        1. JIMJFOX says:

          Are you living in a bubble? Here, pick any of the 100’s available. You also note that petrol [gas] cars are far worse emitters than previously thought & diesel cars emit 10x as much NOx as buses /trucks combined.

          link

    2. needa says:

      It is 3.5 million sq ft. One would think the 50k is either a typo on Samsung’s part, or they will be doing more than just EV packs. Either way, something is better than nothing.

      1. Tech01x says:

        That’s the size of the site, not the manufacturing area.

    3. R.S says:

      This site is about a third of what Tesla plans it’s GF to be. So if it’s fully tooled, it surely could produce way more than 50k packs.

      But they also need contracts first. So while 50k Audis seems good enough for now, I think Samsung has bigger plans for this factory. Otherwise they wouldn’t have built it so big.

      Suppliers just usually don’t they how much they could produce, otherwise they loose their advantage in talks with OEMs. No one wants to admit they have over-capacities.

  2. Fs says:

    Building a factory in Hungary to be in the EU is a big mistake. Nobody wants England to leave but everybody wants to throw our Hungary and Bulgary.

    1. JIMJFOX says:

      Nobody wants England to leave but everybody wants to throw our [sic] Hungary and Bulgary [sic].

      Oh, really? Sources, please?

  3. Doggydogworld says:

    Does this plant just make packs, or the actual cells?

    1. Pushmi-Pullyu says:

      Probably cells. Samsung is one of the major suppliers of li-ion cells, not only for EVs but also for consumer electronics.

      http://insideevs.com/ev-battery-makers-2016-panasonic-and-byd-combine-to-hold-majority-of-market/

  4. Martin Winlow says:

    Great. They all get dressed up in their ‘clean room’ suits and Victor goes and sticks his grubby mitts all over the goods…!

    1. Ben says:

      Its just for PR purposes.
      The bottles of black fluid are actually bought at IKEA, cork is no clean material as well. Think there is nothing to ruin in this room 😉 . Hungary is a country with potential, but Orban is a problem for their future

      1. JIMJFOX says:

        FYI, Orban is their only hope of avoiding Islamisation, that most of Europe seems infatuated by.

        1. Mark.Ca says:

          Oh please! The refugees are all looking to go west so Bulgaria, Romania and Hungry are just transit areas. Hungry has nothing to worry about.

  5. Rob Stark says:

    How many GWh?

    50k x XX kWh?

    1. Mr. M says:

      50k times 40-120kWh if you assume a average pack to be around 70kWh it’s a 3.5 GWh factory.

      Since these are packs for BEV’s and nobody orders less than a 40kWh pack in premium Segment today and since Audi has already stated they will offer more than 100kWh in a pack, the number seem reasonable to me.

      1. Tech01x says:

        Note that one of the major customers of this plant is BMW. They don’t have any large pack vehicles slated for 2018 and many small packs.

  6. zseblodongo says:

    “(that was quick – just under a year by our reckoning),”

    Yeah because this is not a new factory. This Samsung SDI factory was built in 2004 to produce Cathode Ray Tubes for the Samsung TVs produced in another factory also near Budapest. As the CRT TV productions has been halted the factory began to manufacture Plasma TV display modules. As the Plasma TVs were phased out due to too high energy consumption the factory was closed down in 2014, with the factory building remaining intact.

    After the official decision has been made to build a battery factory in Europe they used the old factory building and started to extend it.

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