From Seremban to the world, Samsung SDI starts work on new RM 5.8b EV battery manufacturing plant in Malaysia

Construction of Samsung SDI’s second battery production facility in Seremban, Negeri Sembilan has started. The new plant, known as Plant 2 to Samsung, is estimated to start mass-production of PRiMX 21700 cylindrical batteries in 2024.

Samsung SDI is Samsung’s battery manufacturing arm. Last month, it was reported that the company’s local business entity, known as Samsung SDI Energy Malaysia (SDIEM), has plans to upgrade its facility in Seremban to produce batteries for electric vehicles (EV). 

Known to Samsung as PRiMX 21700, these batteries that measure 21 mm x 70mm can be used in various applications ranging from electrical tools, micro-mobility to electric vehicles.

Initial reports of the plant making 4680-type batteries have not materialised, so we won't be exporting batteries to Tesla in the near-term, although that could still happen at a later stage.

The factory will be Samsung SDI’s second in Malaysia and the first to make cylindrical batteries for electric vehicle customers.

Samsung SDI invested a total of KRW 1.7 trillion (RM 5.8 billion) into the building of the new plant. The investment will be made in stages until 2025.

The global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion cells in 2027, showing an annual growth rate of 8 percent on average, as demand expands from electrical tools, micro-mobility to electric vehicles and energy storage systems.

Although the company did not disclose the annual production capacity at the new plant, The Korea Economic Daily reports that market insiders estimate it to be more than 15-16 GigaWatt-hour (GWh). 

Also read: Malaysia to soon make batteries for Tesla? To be exported from Seremban