Samsung SDI Enters Automotive Battery Market in China
Samsung SDI together with Anqing Ring New Group (hereinafter “ARN”), held a groundbreaking ceremony at Xi’an in Shanxi Province, China for a new battery plant, which will be operated by Samsung-ARN (Xi’an) Battery Group Co., Ltd.
Both companies own 50% share in the Samsung-ARN joint venture.
The new plant will start running in October 2015 with capacity to supply batteries for more than 40,000 electric cars annually.
Total investment by 2020 will be $600 million.
“Samsung SDI hosted a groundbreaking ceremony for a Chinese automotive battery plant at GaoXin Industrial Development Zone located at Xi’an in Shanxi Province, China, attended by 300 people including Sangjin Park, a CEO of Samsung SDI, Wonkie Chang, a president of Samsung China headquarters, Liu Chin-Chen, a governor of Shanxi Province, Dong Jun, a mayor of Xi’an City, and officials from global/local automakers.”
“Xi’an Plant is expected to be built and fully run from October next year. This factory will be large enough to run the entire process for producing automotive battery cells for the first time among global battery companies in China, enabling battery supply for over 40,000 EVs annually. Also, steady investment will be made up to $600 million by 2020, aiming to achieve over $1 billion in sales.”
“This January, Samsung SDI signed a MOU with Anqing Ring New Group (hereinafter “ARN”), the best car engine piston and cylinder manufacturer in China, and Xi’an Gaoke Group, a real estate investment company. This June, they finally established a joint venture ‘Samsung-ARN (Xi’an) Battery Group Co., Ltd.’ (hereinafter ‘Samsung-ARN’).”
According to press release Samsung-ARN already has a lot of pre-orders from global/local OEMs as well as from other joint venture in Energy Storage System segment, which will be established by Samsung SDI and Sungrow of China (a PV inverters manufacturer).
“Samsung-ARN will supply batteries to global/local automotive OEMs in China after beginning its mass production in October 2015. It will also supply batteries to an ESS (Energy Storage System) joint venture expected to be established in the second half of next year. In fact, Samsung-ARN has already obtained enough pre-orders to run a production line at full capacity in 2016.”
Sangjin Park, a CEO of Samsung SDI stated:
“Combining know-how and knowledge of Samsung SDI and Anqing Ring New Group, then creating synergy between both companies, I am certain that Xi’an Plant will become the top automotive battery factory not only in China also in the world. I hope Xi’an City to become the Silk Road for new renewable energy and bring a beautiful future with energy technology.”
Samsung SDI is currently supplying automotive batteries to BMW and Chrysler.