South Korean manufacturer Samsung SDI has begun the production of batteries for electric vehicles (EVs) at a new plant in China, reports Yonhap News Agency. The Samsung-ARN Xian Battery Group plant in Xian will have had total investment of USD600 million by 2020 and will have an annual production capacity of 40,000 EV batteries.
Significance: Samsung SDI, a subsidiary of the electronics giant, is strengthening investment in EV battery production in China, a market where it anticipates significant growth. Construction of the plant in Xian began in August 2014 under a partnership with local company Anqing Ring New Group, a Chinese car engine piston producer, and Xian Gaoke Group, a real-estate investment company. This marks the first Samsung battery plant outside of South Korea, and is built in close proximity to the Samsung electronics-chip factory in China. Globally, Samsung SDI supplies the BMW i3 with batteries, and it is anticipated that the company will continue to supply existing clients such as BMW and Volkswagen in China. The BMW i3, despite being built outside of China, has been approved for a 100% exemption from the 10% new vehicle purchase tax in the country. The company also counts Delphi Automotive, Ford, and Chrysler as customers. In April at the Shanghai Motor Show, Samsung showcased its prismatic battery cells for EVs and plug-in hybrid electric vehicles (PHEVs) slated for production at the Xian plant. The company claimed then that orders had already been received for 2016. Meanwhile, Samsung SDI in 2014 acquired Magna Steyr Battery Systems, which specialises in automotive battery packs.
