South Korean battery manufacturers have begun to set up factories in Europe to speed up the release of new cars by local European automakers.
LG Energy has purchased a batch of new equipment for its third plant in Poland. The plant will be built on land owned by Vestel, Turkey's largest electrical manufacturer, near the city of Wroclaw where the first and second factories are located.
With the commissioning of the No. 3 plant, LG plans to increase the annual production in Poland from 70 GWh to 100 GWh.
SKInnovation also plans to build No. 3 factory in Hungary, which is located in a different city from their No. 1 and No. 2 factories. The reason for the different location is that the new location is located near the Ford and Mercedes-Benz factories, making it more convenient for SKInnovation to serve customers. The annual output of the No. 3 plant is 10 GWh, which is higher than the 7.5 GWh of the No. 1 plant and the 9 GWh of the No. 2 plant. Once it is put into operation, the annual output of SK Europe will reach 26.5 GWh.
SKInnovation plans to start purchasing equipment required for the No. 3 plant in August. In addition to Hungary, SKInnovation also has its own factories in South Korea and China. The total global output is currently 29.7GWh, which is still lower than LG, but compared with the annual output of 4.7GWh in 2019, an increase of nearly 6 times.
Samsung SDI also plans to open a second factory in Hungary, which will be twice the size of the first factory. Samsung will use the new factory to produce the fifth-generation battery. The new battery has a higher energy density than the previous generation and uses new materials and processes. The second factory will build 7 production lines and dozens of assembly lines.
The activities of these South Korean battery manufacturers have also had an impact on the investment of South Korean material manufacturers, and the cathode material supplier EcoProBM is also considering building plants in Europe. Its parent company EcoPro also plans to carry out the cathode material recycling business at LG's Polish plant.
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