Samsung SDI Expands Hungarian Factory to Fuel European EV Boom
Samsung SDI is bolstering its European presence with a significant expansion of its Hungarian factory. The 1.65 trillion won project, primarily funded by the company, aims to boost production of prismatic batteries for electric vehicles (EVs). The expansion, driven by stricter environmental regulations in Europe, will focus on producing stacked batteries. This method is in demand due to new supply contracts with major automakers, including Hyundai, Kia, BMW, and Volkswagen. Samsung SDI's core European base in Hungary, established with a 2 trillion won investment, currently produces two versions of prismatic batteries using winding and stacking methods. The upgrade will convert the first factory and expand the second, increasing capacity to meet growing demand. The Hungarian factory, with a current capacity to produce batteries for 600,000 mid-size vehicles (40GWh), will start supplying batteries for Hyundai and Kia's European EVs next year. By 2032, Samsung SDI expects to supply batteries for about 500,000 vehicles. This expansion is timely, given the 22.8% increase in EV deliveries in Europe in the first quarter of 2023 compared to the same period last year, reaching about 898,000 units. Samsung SDI's expansion and renovation of its Hungarian factory, funded by a 1.65 trillion won capital increase, positions the company to capitalise on Europe's growing demand for electric vehicles. Securing major automakers as customers and increasing production capacity will drive Samsung SDI's rapid sales growth in the coming years.
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