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Samsung SDI CEO Choi Yoon-ho, second from left, poses with Seremban Governor Dato' Seri Haji Aminuddin bin Harun, second from right, and South Korean Ambassador to Malaysia Lee Chi-beom, left, during a groundbreaking ceremony for the company's second battery production plant in Seremban, Malaysia, Thursday. Courtesy of Samsung SDI

By Baek Byung-yeul

Samsung SDI is seeking to increase its cylindrical battery cell production, which electric vehicle (EV) makers are increasingly adopting, as the company said Thursday that it will invest 1.7 trillion won ($1.3 billion) to build an additional battery-manufacturing factory in Malaysia.

The global cylindrical battery market has shown an average annual growth rate of 8 percent as the use of the product has expanded to EVs and energy storage systems from electric tools and micro-mobility products.

The company said it held a groundbreaking ceremony for its second battery plant in Seremban, Malaysia. The battery cell maker will inject 1.7 trillion won into the new factory, which will be completed in 2025. There, the company will begin mass producing cylindrical batteries, from 2024.

"Samsung SDI's construction of its second factory in Malaysia is aimed at responding to the growing demand for cylindrical batteries," a company spokesman said. "Batteries produced at the plant will be used in various applications, from electric tools to micro-mobility to electric vehicles."

Established in 1991, the Malaysian unit is Samsung SDI's first overseas branch. In its early days, the overseas branch produced cathode-ray tube TVs and began producing batteries from 2012.

"Today's groundbreaking ceremony will be a start point for achieving our vision of the global top-tier company by 2030," Choi Yoon-ho, CEO of the company, said during the groundbreaking ceremony. "Through successful construction and early stabilization of the second plant, we will make the Malaysian unit the center of the global battery industry."

The CEO added, "If the Malaysia state government supports us and our partners helps us with the best quality products, the timing of achieving our vision will be accelerated."

"Samsung SDI's investment in the EV battery production facility will continue to create jobs for young people and open more opportunities for local Malaysian companies," Dato' Seri Haji Aminuddin bin Harun, governor of Seremban, said.

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