The South Korean battery manufacturer initially intended to produce these Hyundai-specific batteries solely at its plant in Xi’an, China. However, production will now also take place at its plant in Cheonan, South Korea. As a result, Hyundai will source batteries from both China and South Korea.
The revised investment plan focuses on upgrading existing production lines. While the current mixing and electrode equipment will remain unchanged, additional assembly kits—including notching and stacking equipment—will be installed.
Samsung SDI originally planned to install 20 sets of notching and stacking equipment, but now only four sets will be installed in Xi’an and three in Cheonan. Equipment orders for the Xi’an plant will be placed this month, while the remaining three sets for Cheonan will be ordered early next year.
The upgraded production lines will manufacture prismatic batteries for the Genesis GV90. These batteries will feature a top-tab format, with both the positive and negative tabs located on the top of the battery instead of on the sides.
This reduction in spending was first proposed by newly appointed CEO Choi Joo-sun, likely due to market uncertainties following Donald Trump’s reelection as U.S. President. Even before Trump’s reelection, demand for electric vehicles had already been slowing.
Korean analysts predict that Samsung SDI’s revenue in 2024 will reach 17.5 trillion KRW, with an operating profit of 780 billion KRW—a 22% and 50% decline, respectively, compared to 2023.