LG Energy Solution, Samsung SDI, and SK On invested more than KRW 4.5 trillion in the EV battery production line in the first half of this year. There will be an additional investment in EV batteries in the second half of the year, including establishing a joint venture plant for EV batteries with global auto manufacturers.
According to an industry source, LG Energy Solution, Samsung SDI, SK On invested KRW 2.69 trillion, KRW 1.159.3 trillion, and KRW 702.2 billion, respectively, in facilities in the first half of the year.
LG Energy Solution spent about KRW 2.7 trillion to build an EV battery production line. It added battery production lines in Europe, the United States, and China in order to respond to global EV demand. It also enhanced its EV battery production capacity by building a joint venture with the US’ General Motors (GM). LG Energy Solution is building 1 and 2 joint plants with GM and preparing for plant investment in the second half of the year.
Samsung SDI invested KRW 1.15 trillion in EV battery production lines. The company is pushing for expansion of EV battery production lines in Europe, the US, and Malaysia.
The US will begin full-fledged investment to build a joint plant with the American auto manufacturer, Stellantis. It is believed that Samsung SDI has established a production corporation before constructing a joint plant with Stellantis in the second half of the year. The total fund for constructing a plant is KRW 1.63 trillion. The fund for the construction of a joint EV battery plant in Arizona, will begin investing from August.
SK On is also increasing its investment in EV batteries. It is increasing the investment in not only EV battery production plants but also joint ventures in the US, Europe and China. SK On will be building a joint venture for EV batteries with the US’ Volkswagen and Ford and Hungary, or is seeking to establish a new joint venture in Turkey. LG Energy Solution is considered a latecomer compared to Samsung SDI, but it is accelerating to increase investment in EV batteries by adding a new battery joint plant with Ford.
The reason for all of these investments is the sign of expansion of the global EV battery market. EV batteries grew centering around Europe and China. However, as the US began to build a battery supply chain to expand its EV battery market, the US EV battery market started to grow.
Following LG Energy Solution and SK On, Samsung SDI is building up its entry into the US EV battery market by pursuing an investment in a North American EV battery joint plant following. The three domestic battery companies are expected to enhance joint ventures with overseas auto manufacturers to expand orders for EV batteries in the second half of the year.
By Staff Reporter Ji-woong Kim (jw0316@etnews.com)