Samsung SDI, which makes batteries for various products ranging from smartphones to electric vehicles, plans to become more self-reliant. The company wants to stop using battery components from other brands and make as many parts in-house as possible.
According to a new report from South Korean technology publication The Elec, Samsung SDI is planning to cut costs and become self-reliant by manufacturing cathode internally. A cathode is an essential part of any battery, and the company currently buys it from local cathode makers L&F and Unicore.
Samsung's battery manufacturing arm reportedly wants to make at least 50% of its cathode supplies in-house by 2023. Currently, the company only makes 20% of cathodes it requires to make batteries. For the successful completion of this move, the company has named the chief of its ESS (Energy Storage Systems) business team to head STM, its cathode-making arm.
Manufacturing cathodes internally will give Samsung SDI a price advantage. As a part of this massive effort, the company has decided to partner with Eco Pro BM for supplying materials to STM. I Eco Pro, the parent firm of Eco Pro BM, had jointly developed cathode for Samsung SDI and Cheil Industries in 2005 and has since attained cathode orders for Cheil Industries.
Samsung SDI's primary source of revenue is electric vehicle batteries, and the company plans to invest up to KRW 1.2 trillion in its factory in Hungary by 2030. After the completion of this investment, the company plans to make 18 million batteries per month.
