Samsung SDI and General Motors (GM) have signed a new development agreement focusing on the development of next-generation prismatic batteries for electric vehicles.
The agreement, which builds on an existing partnership between the two firms, will see both co-develop prismatic batteries, designed to offer high energy density and fast charging capability, and will reinforce their ‘commitment to an electrified future’, Samsung SDI said in a statement.
SynergyCells acquisition
Samsung SDI has also acquired GM’s 49.99% stake in SynergyCells, the joint venture established by the companies to build a battery production plant in New Carlisle, Indiana. As the company noted, this ownership change reflects recent market changes, including ‘slower-than-expected growth’ in demand for EVs.
The move means that Samsung SDI will now operate the facility, which is still under construction, independently, making it the firm’s first wholly owned battery production facility in North America.
Once completed, the facility will initially be used to develop batteries for the fast-growing energy storage systems (ESS) market in the US, with a view to co-developing prismatic batteries for EVs in due course.
“While reflecting recent market changes, this acquisition decision is to continue the strategic partnership with GM,” a Samsung SDI spokesperson commented. “We will continue our commitment to an electrified future with the partner, while utilising the plant to proactively respond to the fast-growing ESS market in the US.”
Financial performance
In the second quarter of its financial year, Samsung SDI reported revenue of KRW 3.77 trillion ($2.59 billion), an increase of 18.5% on the same period a year ago, and operating profit of KRW 203.8 billion.
Revenue from its Battery business increased 18.8% to KRW 3.52 trillion, supported by demand for batteries used in uninterruptible power supply (UPS) systems, battery backup units (BBUs), power tools, and electric vehicles in Europe. In its Electronic Materials arm, revenue rose 14.5% to KRW 249.8 billion.
“We will continue to pursue sustainable growth while strengthening profitability,” a spokesperson said. Read more here and here.
