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Samsung SDI headquarters in Giheung-gu, Yongin, Gyeonggi Province (Samsung SDI) |
Samsung SDI unveiled details on its first electric vehicle battery production in the US in partnership with Stellantis and General Motors during its third-quarter earnings announcement Wednesday.
“The joint venture with Stellantis, Starplus Energy, marks Samsung SDI’s first foray into battery cell manufacturing in the US,” said Son Michael, executive vice president of automotive & ESS business at Samsung SDI, during a conference call earlier in the day. “The initial production line will start operation in December, ahead of schedule, to manufacture our prismatic battery (P6) cells and modules.”
“The remaining three (production) lines will be activated from the first quarter of 2025, with a targeted annual capacity of 33 gigawatt-hours by year-end. Leveraging our know-how at the Hungarian plant, we plan to shorten the ramp-up period (of using maximum capacity) to one or two months to meet our clients’ demands effectively.”
Son also noted the US Advanced Manufacturing Production Credit, a tax credit for energy companies running business within the states, would be marginal for Starplus Energy in the fourth quarter, given its early stages of operation. But the number is expected to increase from 2025, in line with Stellantis' launch of new EV lineups.
The joint venture plant with General Motors will supply P6 batteries from 2027 to 2034, according to Kim Jong-sung, executive vice president of the business management office at Samsung SDI. The plant is set to be built near Starplus Energy in New Carlisle, Indiana, with an initial capacity projected at 27 gigawatts-hours and expansion capabilities up to 36 gigawatts-hours.
Kim stressed that Samsung SDI is considering setting up additional production bases for EVs and energy storage systems (ESS) either in joint ventures or company-owned manufacturing plants.
Earnings for the third quarter were modest, as the ramp-up of North American production had not yet started, coupled with the slowdown in EV sales in Europe. The battery maker saw a 30 percent drop in sales revenue to 3.94 trillion won ($2.8 billion) from a year earlier, and its operating profit dipped 72 percent to 129.9 billion won.
Despite the sales drop in Europe, the company’s largest overseas market, Samsung SDI is optimistic about improved figures next year, largely driven by the region’s tighter regulations on carbon emissions.
Germany, the largest EV market in Europe, is working to expand tax incentives and discounts for corporate EVs, which make up nearly 60 percent of car sales in the country. In particular, the upper price limit for corporate EVs eligible for tax discounts will likely increase from 70,000 euros to 95,000 euros ($75,700 to $102,800), positively impacting the sales of premium electrified vehicles powered by Samsung SDI batteries.
Addressing the burgeoning ESS markets, the battery maker recently completed the verification process of large-sized lithium iron phosphate batteries and started building a mother line in its Ulsan plant last month. Mass production and global distribution are planned for 2026.
As for the 46-series cylindrical batteries – measuring 46 millimeters in diameter -- Samsung SDI will start production in the first quarter of next year targeting micro-mobility applications and electrified two-wheeler markets, including those in India, as well as e-four-wheelers in construction and agricultural sectors.
