Prepare to strengthen the parts supply chain for additional production lines
Cap Assembly… Increased proportion of Can case and square type CAN

Photo Image
<Samsung SDI Hungary corporation view Photo=Electronic TimesDB>

Samsung SDI is strengthening its penetration into the Hungarian market together with domestic battery suppliers. Suppliers will expand their factories in Hungary, which they entered together with Samsung SDI, in order to supply stable parts to meet the growing demand for electric vehicle batteries.

According to industry sources on the 6th, Shinheung SEC and Sangsin EDP, Samsung SDI's partners, are pushing for the expansion of a battery parts plant in Hungary.
 
These companies specialize in the production of square type CAN and cap assemblies, which are core parts of electric vehicle batteries. It is understood that they want to keep pace with the expansion of Samsung SDI electric vehicle battery plant in Hungary.

By the end of this year, Shinheung SEC will at least double the production line for cap assembly for rectangular batteries at the Monor plant in Hungary from the current 5 units. When the expansion is completed, it will be able to produce more than 10 million cap assemblies per month. The cap assembly is a key part that serves as a lid that discharges the gas inside the battery to the outside. A vent, a safety device, is attached to the cap assembly to prevent the risk of explosion.

Photo Image
<Shinheung SEC factory view>

Sangsin EDP will also add one square type CAN production line to its factory in Jászberény, Hungary. The squaremetal can is a core component that contains four key materials: anode, cathode, electrolyte, and separator. It serves to protect the battery from the external environment.

Shinheung SEC and Sangsin EDP will supply square type and circular type CANand cap assemblies to Samsung SDI not only for electric vehicles, but also for batteries for information equipment and energy storage system (ESS). In addition, they are responding to Samsung SDI’s demand by advancing together in the vicinity of its factories in Hungary, China and Malaysia. As demand for Samsung SDI's electric vehicle batteries is rapidly increasing, these companies are pushing for expansion in order to stably procure key parts.

Photo Image
<Sangsin EDP square type CAN>

In the European electric vehicle market, BMW, Volkswagen, and Audi are equipped with prismatic batteries. In particular, prismatic batteries are attracting attention as Volkswagen has formulated a strategy to lower the proportion of pouch batteries and increase the proportion of prismatic batteries.

Although prismatic batteries have excellent safety, their disadvantage is that they have low energy density. Accordingly, Samsung SDI and its partners are focusing on improving the energy density while improving safety by changing the manufacturing method of prismatic batteries.

An industry official said, "Europe is strengthening its domestic supply chain, so it is expected that the plans for local plant construction and expansion of battery makers will be materialized."

Photo Image
<Samsung SDI's Gen 5 battery Photo=Electronic Times DB>

By Staff Reporter Jiwoong Kim (jw0316@etnews.com)