Samsung SDI intends to expand battery pack production capacity at its Michigan plant, which Samsung SDI acquired from Magna Steyr in 2015.
The factory, which Samsung SDI bought for $62.7 million, has been producing battery packs since 2018 and is currently operating at 100 percent capacity. The cells used in this factory come from Samsung SDI's factory in Hungary.
However, Samsung SDI expects to add a new battery pack production line at the factory due to growing demand, especially for the Stellantis plug-in hybrid model. Reports suggest the upgrade could cost $30 million.
Although Samsung SDI's factory is not a gigafactory, the company's move still sends a signal that the battery market is growing and expanding in all directions, including existing battery pack assembly facilities.
Samsung SDI's largest project in the U.S. is the Gigafactory in Kokomo, Indiana, which has an investment of more than $2.5 billion, a joint venture between the company and Stellantis. If all goes well, the plant should start production in the first half of 2025, with an initial capacity of 23 GWh per year.
Considering the rapidly rising sales of electric vehicles and the localized production trend of key components such as batteries, chips and other advanced technologies, it is likely that Samsung SDI will set up more projects in North America in the future.
