News
According to Chinese media outlet IThome, citing a report from The Elec, South Korean battery manufacturer Samsung SDI is reported to increase its use of production equipment sourced from Chinese suppliers.
Samsung SDI Executive Vice President Kim Ik-hyeon noted at the company’s annual shareholders’ meeting that Chinese equipment makers have significantly improved in technology and offer more competitive pricing than local Korean suppliers, as the report highlights.
As noted by IThome, citing sources, Chinese equipment suppliers offer prices that are 20%–30% lower than those of Korean manufacturers and have shorter delivery lead times
Chinese Equipment Makers Gain Ground in South Korea
Leading Chinese battery equipment manufacturers—such as Lead Intelligent, Hymson, SINVO, and Zhejiang Hangke—have established subsidiaries in South Korea over the years, as The Elec notes.
Among them, as the report notes, Hangke stands out for supplying equipment to all three major South Korean battery companies: Samsung SDI, LG Energy Solution, and SK On.
Although these Chinese companies have not yet joined Samsung SDI Partnership Association (SSP), the report highlights that Chinese suppliers are poised to strengthen their presence in South Korea’s supply chain, particularly in the area of cyclers. For instance, Hangke serves as a key supplier of cyclers to BlueOval SK, the battery joint venture between SK On and Ford, as the report notes.
Samsung SDI’s Recent Investment Plan
Samsung SDI, South Korea’s second-largest battery manufacturer, has announced plans to raise KRW 2 trillion (approximately USD1.37 billion) through a stock offering. As noted by Yonhap News, the company intends to use the funds to invest in its joint venture with General Motors in the U.S, expand production capacity at its Hungarian facility, and support the development of solid-state battery manufacturing in South Korea.
TrendForce’s latest research reveals that solid-state batteries are emerging as the next-generation battery technology with high commercial potential. Manufacturers are accelerating large-scale production development and performance validation for automotive applications.
Read more
(Photo credit: Samsung SDI)
