Samsung SDI launched construction of its plant for battery production in Hungary

Watch out, Tesla — you’re not the only one
increasing global battery production with that gigafactory in Nevada. Samsung
SDI announced that its own large battery factory will be built in Hungary,
beginning in the second half of 2018.

Technically, Samsung’s idea can also be deemed a
gigafactory, since it has a planned production in the gigawatt-hours. Although
the Korean battery maker didn’t confirm the planned output, it claims an “annual
capacity of batteries for 50,000 pure electrics vehicles.”

Though it’s nowhere near Tesla’s planned output, Samsung is looking
at an average of 50 kWh per vehicle, totaling to ~2.5 GWh of capacity. According
to the company, it’s a significant increase in what will be a short period of

The electronics giant released a rendering of the plant and
shared a photo of the pouch cells it plans to produce at the plant, which can
be seen below. 


The factory will be built from existing facilities previously
used for display production located in Geod, Hungary, at a distance of 25
kilometers north of Budapest in a site area of about 330,000 square miles. The
plant will serve European automotive manufacturers in Central and Eastern

Executive vice president and head of automotive and ESS
Business division, Jeong SehWoong, said of the announcement, “By launching
construction for the plant in Hungary, we now can set up the global triangular
production structure for electric vehicle batteries. We can especially provide
higher quality services to European customers in Europe by generating synergy
with SDIBS.”

According to Samsung SDI, it will invest 400 billion Won
(equivalent to $358 million) in the new facility.

Earlier this year, Tesla began taking delivery of important
quantities of battery cells from Samsung SDI. The automaker then said the cells
will be used for its Tesla Energy products and not its vehicles.


Source: Samsung