Samsung SDI broke ground on a second battery production facility in Seremban, Malaysia. With a total of 1.7 trillion won (about US$1.3 billion) investment phase-by-phase until completion in 2025, Plant 2 at Samsung SDI Energy Malaysia (SDIEM) will start mass-production of PRiMX 21700 cylindrical batteries (21mm X 70 mm) in 2024.
Samsung SDI’s decision to construct the second factory in Malaysia comes as a strategy to meet the rising demand for cylindrical batteries recently.
The batteries from the Plant 2 will be used in various applications ranging from electrical tools, micro-mobility to electric vehicles.
Established in 1991, SDIEM is the first overseas business entity of Samsung SDI.
The company started off with producing braun tubes in its early years before shifting to batteries in 2012.
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% on average, as demand expands from electrical tools, micro-mobility to electric vehicles and energy storage systems.