2025. 1. 20. 16:43ㆍKorean Economy
Samsung SDI is injecting significant funds into its Xi'an plant in China to replace outdated production equipment. This move is seen as part of the company's efforts to adopt the latest manufacturing technologies in preparation for mass-producing batteries for Hyundai Motor’s new vehicle models later this year.
According to Tianyancha, a Chinese corporate information platform, the registered capital of Samsung SDI's Xi'an subsidiary increased by approximately 18%, from 2.15 billion yuan (~427.7 billion KRW) to 2.53 billion yuan (~503.3 billion KRW). This increase indicates the company's plan to secure additional funding and lay the groundwork for business expansion.
With this capital injection, Samsung SDI will install new battery production equipment at its Xi'an plant. By replacing aging equipment and incorporating advanced manufacturing methods currently used at its Hungarian plant, the company aims to produce a new generation of batteries featuring cutting-edge technology.
Samsung SDI has also been in the process of selecting key equipment suppliers. It is reported that orders have been placed for notching and stacking equipment. Final candidates for this supply, Woowon Technology and Philenergy, delivered pilot equipment to Samsung SDI's Cheonan plant last year for testing.
The batteries produced on the new production lines at the Xi'an plant are expected to be supplied to Hyundai Motor. Specifically, Samsung SDI will provide batteries for the Genesis GV90, the flagship SUV of Hyundai’s premium brand, set to launch in the first quarter of 2026. Mass production of these batteries is planned to begin in the latter half of this year. Initially, all production was to take place at the Xi'an plant, but the strategy was adjusted to split production with the Cheonan plant, considering exports to the U.S. and other factors.
Samsung SDI operates a small battery plant in Tianjin and a medium-to-large battery plant in Xi'an. The Xi'an facility, established in October 2015, was built in partnership with Anqing Huaxin and Xi'an Gaoke Group to produce batteries for up to 40,000 electric vehicles annually.
The company faced challenges in China during the period of retaliatory measures following the deployment of the THAAD missile system, which disqualified electric vehicles equipped with Korean batteries from receiving subsidies. However, with the abolition of the subsidy system, Samsung SDI's Chinese operations have seen a revival. In line with local demand, the company has expanded its facilities, investing 1.6 billion yuan in 2021 to convert its 34Ah lithium-ion battery production lines into 112Ah electrode production lines.