Samsung SDI is supplying battery modules to Volvo Group in Sweden, including battery cells for electric vehicles. The company will also carry out consignment production by its partners for the first time due to the expansion of battery production.
It was confirmed on the 28th that Samsung SDI is consignment to produce battery modules for commercial electric vehicles (bus and trucks) of Volvo through Sebang Global Battery, which is famous for "ROCKET Battery."
The battery industry usually supplies only battery cells to car manufacturers, while the car manufacturers are in charge of the modules, pack-up work, and production, and Volvo also ordered cell modules from Samsung SDI.
Sebang Global Battery receives Samsung SDI battery cells, organizes them into modules, and produces them, and finally supplies them to Volvo through Samsung SDI. Volvo packs the battery module and applies it directly to the vehicle.
The annual output agreed between the two sides is known to be at the GWh level. The Samsung SDI battery cell that goes into this is a cylindrical small battery (standard 21700).
After being selected as an outsourcing company for Hyundai Motor Group's production of battery packs for passenger electric vehicles earlier this year, Sebang Global Battery has secured large customers including Samsung SDI. Battery modules for Volvo will be mass-produced at a factory located in the Sebang Global Battery Gwangju Pyeongdong Industrial Complex from January of the new year.
Until now, Samsung SDI has produced modules and packs in mixed lines such as batteries for energy storage systems (ESSs) in its Ulsan plant. As the demand has increased recently, it has started trading with outsourcing companies for the first time. Batteries for electric trucks and electric buses are up to 10 times more expensive and capacity than regular passenger electric vehicle batteries. The price of selling one of these commercial electric vehicle battery systems is equivalent to the value of 10 batteries for generic electric vehicles. It is analyzed that it will be advantageous in securing profitability.
By Staff Reporter Tae-jun Park (gaius@etnews.com)