- Samsung SDI, an affiliate of Samsung Electronics, has been in talks with automakers including Stellantis, Amazon and Rivian to supply batteries manufactured at its potential U.S. factory
- It is considering investing at least 3 trillion won ($2.62 billion) to manufacture batteries for Stellantis and a minimum of 1 trillion won for batteries to Rivian, according to the source
As per a report South Korea’s Samsung SDI Co may build a battery cell plant in the United States to support the auto industry’s shift to electrification, a company source with close knowledge of the matter told Reuters. The report also said that Samsung SDI, an affiliate of Samsung Electronics, has been in talks with automakers including Stellantis, Amazon and Rivian to supply batteries manufactured at its potential U.S. factory, the source said.
It is considering investing at least 3 trillion won ($2.62 billion) to manufacture batteries for Stellantis and a minimum of 1 trillion won for batteries to Rivian, according to the source. The source added that Samsung SDI has not yet decided whether they would launch the U.S. plant as a joint venture with carmakers, or as an independent manufacturing site.
Tariff rules in the United States-Mexico-Canada Agreement (USMCA)
The report added that the source said the decision to build in the U.S. reflects the changes on tariff rules in the United States-Mexico-Canada Agreement (USMCA) that took effect last year, replacing the 1994 North American Free Trade Agreement (NAFTA). The USMCA requires that vehicles have 75 per cent North American content compared with a 62.5 per cent threshold under NAFTA in order to avoid tariffs.
Samsung SDI has EV battery plants in South Korea, China and Hungary, which supply customers such as BMW, Ford, Volvo and Volkswagen.
