Samsung Expanding EV Battery Pack Production Plant In US

Samsung’s battery-making unit, Samsung SDI, is expanding its manufacturing plant in the United States, a move that is going to open more jobs in the country by 2024.

Industry sources disclosed to Yonhap on Thursday that the South Korea giant’s battery-focused division has decided to expand its plant in the U.S. The firm is said to be investing around $60 million to extend its facility in Auburn Hills, Michigan near Detroit.

“It is true that the expansion is in progress,” a Samsung SDI official said before noting that the expansion's operations will depend on the market situation. “We will decide on the scale of production capability after the expansion, however, based on supply and demand situation.”

Industry watchers told Korea Herald that the expansion project could open more than 400 jobs in Michigan by 2024. As of late, Samsung’s existing factory in Michigan employs 130 people.

The new facility will not only serve as a battery pack manufacturing plant, it would also house the R&D center and serve as the headquarters of auto battery operations of Samsung SDI America Inc.

The Michigan Economic Development Corp. said Samsung’s new plant will be its first high-volume auto battery facility in the U.S. that will supply rechargeable batteries for the auto, information technology and energy storage system industries. However, Samsung’s local clients were not disclosed, as per Automotive News.

Prior to deciding on the location of its new plant, Samsung considered a competing site in Ohio that offered the tech giant immediate occupancy. The site also has other perks such as room for expansion and its close proximity to Samsung’s primary supplier, as well as an incentives package from the state of Ohio.

The announcement of the expansion comes years after Samsung SDI purchased Magna Steyr, an electric vehicle battery pack manufacturer based in Graz and Austria, in 2015. The acquisition enabled Samsung to take over the U.S.-based production line of the company.