Published : Jan. 23, 2014 - 20:10
Samsung SDI chief executive Park Sang-jin
South Korea’s Samsung SDI Co., a leading hybrid car battery maker, said Thursday it plans to tap into China’s battery market by establishing a production facility in cooperation with its counterparts there.
Samsung SDI signed a memorandum of understanding with Anqing Ring New Group and Shanxi province in northern China to open a joint-venture by April. Their combined investments will total $600 million over the next five years.
The firm, however, did not disclose details on stakes among the three players. The new factory is scheduled to start its operations next year.
Samsung SDI said the latest move will allow the company to take a bigger slice of China’s electric car battery market, which will become the world’s largest by 2020.
The company has been expanding its global presence by providing batteries to BMW AG’s i3 electric car and Chrysler’s F500e models.
The Chinese government earlier said it plans to provide the market with some 5 million electric automobiles by 2020 in an apparent bid to foster its renewable energy industry.
Samsung SDI added it can also seek synergy with Samsung Electronics Co., as the location is close to the tech giant’s overseas chip plant, due for completion in the first half of this year. (Yonhap News)