Samsung SDI to invest 16 trillion won in Ulsan for next-generation battery production

Samsung SDI plans to invest about 16 trillion won ($10.3 billion) in its Ulsan operations through 2040, following a Thursday disclosure of a 9 trillion won next-generation battery research and development investment at its Cheonan facility. The company is positioning Ulsan as its primary mass-production hub for next-generation batteries.

Samsung SDI disclosed the medium-to-long-term investment strategy on Friday, saying it would channel about 16 trillion won into the Ulsan site from this year through 2040 to strengthen its competitiveness in next-generation batteries.

The investment will lay the groundwork for mass production of all-solid-state batteries for electric vehicles, lithium iron phosphate batteries for energy storage systems and sodium batteries. Samsung SDI said it expects the Ulsan site to become a global mass-production hub for next-generation batteries.

The plan was unveiled Friday at a national briefing on the Yeongnam region's advanced-industry development vision, held in Jinju, South Gyeongsang Province, and presided over by President Lee Jae-myung. Samsung Group announced at the event that it would invest a total of 60 trillion won to develop the Yeongnam region into a leading hub for manufacturing AI.

Roh Tae-moon, president and CEO of Samsung Electronics, presented the announcement on behalf of Samsung Group. "The Yeongnam region has been the heart of Samsung's manufacturing innovation and advanced industry since the 1970s," he said. "We produce our flagship Galaxy smartphones in Gumi, manufacture batteries in Ulsan, and make multilayer ceramic capacitors and package substrates in Busan."

Roh said AI is transforming the manufacturing sector at an unprecedented pace. "AI is turning traditional factories into AI-driven facilities centered on humanoid robots," he said.

"Samsung plans to invest about 60 trillion won to develop the Yeongnam region into a manufacturing AI leader by integrating AX and robotics into the area's key industries," Roh said. "We will concentrate investment in humanoid robots, AI data centers and advanced manufacturing to create 200,000 quality jobs in the Yeongnam region."

Samsung Group's Yeongnam investment plan includes 19 trillion won by Samsung Electronics and Samsung SDS in Gumi, 16 trillion won by Samsung SDI in Ulsan, 15 trillion won by Samsung Electro-Mechanics in Busan and 10 trillion won by Samsung Heavy Industries in Geoje.

On the Samsung SDI investment, Roh said the company would put 16 trillion won into mass production of cutting-edge all-solid-state batteries for electric vehicles and batteries for energy storage systems in Ulsan. "Through this, we aim to achieve the world's first mass production of all-solid-state batteries in Ulsan and secure technological leadership for the future," he said.

Samsung SDI had also announced its Cheonan investment plan on Thursday, committing about 9 trillion won through 2040 to build a mother line for next-generation battery technology verification and a state-of-the-art R&D facility. While the Cheonan investment focuses on technology verification and research and development, the Ulsan investment is squarely aimed at establishing a mass-production base.