Samsung SDI Expands Hungarian Battery Factory for 46120 Round Cells, Eyes BMW Collaboration

In a move aimed at strengthening its presence in the electric vehicle (EV) market, Samsung SDI has plans to expand its battery cell factory located in Goed, Hungary. The company intends to produce large round cells with a diameter of 46 millimetres, a development that could see BMW emerge as a potential customer for these cells.

Unnamed sources cited by TheElec, an industry publication, have reported that BMW has engaged Samsung SDI to supply round cells in the 46120 formatā€”characterised by a 46 mm diameter and a length of 120 mm. These cells are anticipated to be produced at the Hungarian facility. Alongside this format, Samsung SDI is also said to be gearing up for the manufacture of 4680 and 4695 cells at the same site. To facilitate these expansions, the company is poised to invest approximately 500 billion won (equivalent to around 345 million euros) in enhancing the Hungarian plant. This investment will involve the installation of two additional production lines, with a collective capacity of 10 GWh per year, dedicated to round cell production.

See also: GM and Samsung SDI Announce $3 Billion Investment in Joint Battery Cell Factory in the US

Samsung SDI, previously trailing other major South Korean cell manufacturers such as LG Energy Solution and SK Innovation, has been putting efforts into the development of round cells with a 46-millimetre diameter. The company has established a pilot production line in South Korea to this end. Furthermore, it is reported that Samsung SDI’s plans also encompass the establishment of round cell production within a new facility in Malaysia. The latest quarterly report by Samsung SDI indicates that the production of 46 mm diameter sample cells has already commenced.

The burgeoning collaboration between Samsung SDI and BMW seems to be taking shape in Hungary. Speculation emerged as early as January 2023, suggesting that Samsung SDI was gearing up for round cell production to cater to BMW’s needs in the Hungarian market. Notably, BMW is in the process of setting up an electric car plant in Debrecen, Hungary, where the production of the first all-electric New Class vehicle is scheduled to begin in 2025, alongside battery assembly. Adding to the EV landscape in Debrecen, Chinese battery cell manufacturer Eve Energy is also poised to construct a factory, intending to supply BMW with large round cells for its New Class electric cars. It is reported that Eve’s cells will adhere to the 4695 format. BMW currently employs two cell heights: 120 and 95 millimetres.

See also: Samsung SDI Opens Battery R&D Center in China to Boost Technological Competitiveness

Several major automakers, including GM and Tesla, are reportedly exploring the integration of round cells with a 46-millimetre diameter in their EVs. As a result, Samsung SDI may potentially secure contracts with multiple renowned automakers for its round cell offerings. Notably, there are indications that Volvo might also be added to Samsung SDI’s list of clients for round cells, though details on this are limited.

In a related development, Samsung SDI has been fostering a close partnership with GM. Both companies have outlined plans to establish a battery cell factory in the US state of Indiana by 2026. This factory is expected to produce prismatic as well as round cells with a high nickel content. Additionally, Samsung SDI recently signed a letter of intent with Stellantis, another major player in the automotive sector, regarding the construction of a second collaborative battery cell factory in the United States. Details pertaining to the specific cell types to be produced within this partnership are yet to be disclosed.

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