Samsung Considers Building Standalone Battery Plant in US
Samsung SDI Co., a major battery supplier for automotive giants like General Motors and Stellantis, is actively considering building another manufacturing plant in the United States, signaling confidence in the long-term growth of the electric vehicle (EV) market despite recent policy shifts, Bloomberg reports.
CEO Joo Sun Choi told reporters in Seoul on Wednesday that the company is exploring the possibility of establishing a standalone battery plant in North America. This comes in addition to the existing plans for collaborative ventures with GM and Stellantis in Indiana, and a previously completed facility with Stellantis.
This potential investment demonstrates that component suppliers for plug-in vehicles remain optimistic about the market’s rebound, driven by a global push for emissions reduction, even amid short-term challenges and uncertainties. The potential expansion suggests confidence that the market can withstand near-term headwinds, including recent rhetoric and policy changes.
The announcement also comes as South Korean battery manufacturers, including LG Energy Solution and SK On, have committed at least $54 billion in combined investments for battery manufacturing facilities across the US. These investments were initially incentivized by tax credits under the previous administration’s green-energy bill.
Furthermore, boosting manufacturing in the US could potentially ease tensions with certain political figures who have previously criticized South Korea’s trade practices.
Industry Expects Rebound After Current Slowdown
LG Energy, South Korea’s largest battery maker, anticipates the EV industry will hit its lowest point in the first half of this year. Echoing this sentiment, raw-material suppliers to battery makers are also forecasting a future rebound.
Posco Future M Co.’s Chief Executive Officer Eom Gi-chen predicts the industry will likely recover within two years. Despite the current slowdown in EV demand, the company has increased its production target for this year, driven by demand from automakers seeking raw materials for cells made in Korea.
Eom also highlighted an emerging trend within the industry, noting a move toward a “free from China” approach, reflecting a broader effort to reduce reliance on Chinese supply chains.
