Samsung’s battery manufacturing arm to continue R&D investment to bag more orders
Samsung SDI will continue to invest more in research and development so that it can drive growth and bag more orders in the future. The company is expected to invest a total of $678 million in 2020 for R&D, its highest annual investment ever. Samsung’s battery-making unit is preparing itself for the electric vehicle era with its continued investments.
According to the company’s previous reports, Samsung SDI invested $424 million in 2017, $508 million in 2018, and $601 million in 2019. This indicates that the company’s investment for research and development rose 60% in just three years. Samsung SDI has already invested $347 in R&D this year, pointing towards a total investment to reach $678 million by the end of 2020.
The company wants to develop its electric vehicle battery business as the growth engine for the future. Most of its R&D investments have been used in the development of next-generation batteries for electric vehicles. It is preparing for the mass production of fifth-generation batteries that have 88 percent nickel content based on high-nickel cathode material. This battery offers longer range and lower cost compared to previous generation batteries.
Samsung SDI began drawing attention in the international industry in 2016 after it introduced a battery that offers up to 600km of range for electric cars. In 2017, it displayed a battery that provided a range of up to 500km after just 20 minutes of charging. Recently, the company has been busy developing solid-state batteries that are being considered as a game-changer. Samsung has been in talks with Hyundai to offer batteries for the automobile brand’s future electric cars.
The battery making firm also invested in the construction of a smart battery factory in Cheonan where sensors and AI mechanisms are used for improved control on the manufacturing process. Since 2017, when Jun Young-Hyun was appointed as the president, the company has emphasized technology management and to offer the best quality and safety in the industry.
