KUALA LUMPUR (July 21): Samsung SDI Co Ltd said the South Korean company on Thursday (July 21) held a ceremony to mark the ground-breaking for its 1.7 trillion won (about RM5.8 billion) second cylindrical battery production facility (Plant 2) in Seremban, Negeri Sembilan to meet the rising demand for cylindrical batteries, which will be used in applications including electrical tools and electric vehicles (EVs).
"Company held a ground-breaking ceremony of Plant 2 in Malaysia on July 21 with a plan to start mass production of PRiMX 21700 cylindrical batteries in 2024," Samsung SDI said in a statement on Thursday (July 21).
According to Samsung SDI, the company undertakes its Malaysian operations via Samsung SDI Energy Malaysia Sdn Bhd (SDIEM).
Established in 1991, SDIEM was the first overseas business entity of Samsung SDI, according to Samsung SDI.
"The company (SDIEM) started off with producing braun tubes in its early years before shifting to batteries in 2012," Samsung SDI said.
Samsung SDI added the ground-breaking ceremony for Plant 2 of SDIEM was attended by, among others, Samsung SDI president and chief executive officer Yoonho Choi and Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun.
Choi said in his opening remarks: "Today's ground-breaking ceremony will serve as a starting point for realising our vision to become a global top-tier company by 2030.
"With successful completion and early stabilisation of Plant 2, we will make SDIEM the centre of the global battery industry.
"With the support from the Malaysian state government and partner companies for best quality, we will be able to realise the vision much faster," he said.
Meanwhile, Aminuddin said Samsung SDI's investment in Malaysia is integral to Malaysia's vision of driving robust economic growth in the country and Negeri Sembilan as outlined in the Malaysia Vision Valley 2.0 plan.
"Not only is this [a] testament to our economic potential in Negeri Sembilan, but also the investment-friendly policies implemented by the state.
"Samsung [SDI's] investment to be the pioneer in EV battery cell manufacturing in Seremban will continue to create jobs for the youth and spur more opportunities for local businesses," he said.
According to Samsung SDI's statement, the global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion in 2027 for an annual average growth rate of 8% as demand expands for usage in electrical tools, micromobility to EV and energy storage systems.
"Samsung SDI's decision to construct the second factory in Malaysia comes as a strategy to meet the rising demand for cylindrical batteries recently.
"The batteries from Plant 2 will be used in various applications ranging from electrical tools, micromobility, to EV," Samsung SDI said.