InterBattery 2022 CEO Exclusive Coverage
Top Concern: 'All-Solid-State Battery'
Samsung Suwon Research Center Pilot, SK Also Accelerating
Samsung Prioritizes US Joint Venture Business Over Own Factory
On the 17th, Choi Yoon-ho, CEO of Samsung SDI (right), and Moon Seung-wook, Minister of Trade, Industry and Energy, are seen having a business-related conversation while touring the Samsung SDI exhibition hall at 'InterBattery 2022' held at COEX in Samseong-dong, Gangnam-gu, Seoul. CEO Choi spoke cautiously throughout, using a very soft voice, and maintained a proper posture with his hands neatly clasped. (Photo by Moon Chae-seok)
[Asia Economy Reporter Moon Chaeseok] SK On is entering the construction of a pilot line (demonstration production line) for all-solid-state batteries, known as the "dream battery." This move comes as Samsung SDI announced three days ago that it would begin construction, signaling SK's fierce pursuit. LG Energy Solution is also actively developing both 'polymer-based' and 'sulfide-based' all-solid-state battery technologies and has clearly stated that it aims to commercialize the polymer-based type by 2026.
On the 17th, Ji Dongseop, CEO of SK On, met with reporters at the 'InterBattery 2022' exhibition held at COEX in Samseong-dong, Gangnam-gu, Seoul, and said, "It seems Samsung has advanced (all-solid-state batteries) a bit faster," adding, "We are also preparing." Earlier, Samsung SDI announced on the 14th that it had started construction of a 6,500㎡ (2,000 pyeong) all-solid-state battery pilot line (S line) at its research center in Yeongtong-gu, Suwon-si, Gyeonggi-do.
LG Energy Solution is also developing both 'polymer-based' and 'sulfide-based' all-solid-state batteries and is racing to commercialize the polymer-based type by 2026. The three major Korean companies are focusing on this core material, which has attracted global attention. This is because it is safer than existing products due to the absence of organic solvents and can increase energy density by utilizing lithium metal anodes.
While the financial investment industry expects SK On to complete its pre-IPO (initial public offering) procedures by next month, CEO Ji remained tight-lipped about the IPO. He did not respond at all to questions regarding the timing of the pre-IPO or IPO. To three questions from reporters, he replied, "There is no plan set yet."
At the InterBattery 2022 SK On exhibition, Moon Seung-wook, Minister of Trade, Industry and Energy (second from the left), wrote a handwritten support message on an SK On battery product and posed with officials. From the left, Jeon Young-hyun, Chairman of the Korea Battery Industry Association (Vice Chairman and CEO of Samsung SDI), Minister Moon, Ji Dong-seop, President and CEO of SK On, and Choi Yoon-ho, President and CEO of Samsung SDI. (Photo by Moon Chae-seok)
Choi Yunho, CEO of Samsung SDI, said that the company would first proceed with a joint factory with Stellantis in the U.S. before building its own battery plant. This strategy differs from LG and Samsung, which are aggressively expanding production capacity (capability) in the U.S.
After the 52nd regular shareholders' meeting held at The-K Hotel in Seocho-gu, Seoul, Choi told reporters, "While building the Stellantis joint factory, we think additional factories will be needed in the future, but first, we will succeed with the joint venture with Stellantis and then secure additional production capacity based on that."
He also said that the site for the Stellantis joint factory would be announced soon. "Building a factory basically takes more than two years, and there are various complex issues such as negotiations with local governments on incentives," he said. "We will soon finalize and disclose the site, etc."
The joint venture with Stellantis plans to produce electric vehicle battery cells and modules in the U.S. starting from the first half of 2025 with an initial annual capacity of 23 GWh, expandable up to 40 GWh. This will establish Samsung SDI's production bases not only in Ulsan, South Korea, Xi'an, China, and G?d, Hungary, but also in the U.S.
The batteries produced by the joint venture will be supplied to Stellantis factories in the U.S., Canada, and Mexico and will be installed in a range of vehicles from plug-in hybrid electric vehicles (PHEVs) to pure electric vehicles (EVs). Therefore, it is expected that CEO Choi will soon finalize the factory site in the U.S. and confirm the investment scale.
Regarding questions from the press about whether Samsung SDI is negotiating with companies other than Stellantis or which markets it is targeting, as revealed in the earnings conference call, Choi was reserved. He said, "In the long term, we need to consider various possibilities, but we will first successfully complete the Stellantis project," adding, "And then, if additional capacity is needed, we will consider it in the long term."
When asked about the National Pension Service opposing the appointment of the CEO due to concerns over shareholder value destruction, he expressed difficulty in answering, saying, "If you ask me that, it is hard to respond."
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