Samsung makes US$1.57 bil investment into first EV battery cell manufacturing plant in Malaysia
By Digital News Asia July 22, 2022
- Investment represents confidence of multinational companies in Malaysia
- Samsung SDI aim to solidify its position as a Global Top Tier Company by 2030
Samsung SDI Energy Malaysia Sdn Bhd (Samsung SDIEM) witnessed a significant milestone yesterday with the opening of its Phase Two EV battery cell manufacturing facility in Seremban. A cumulative US$1.57 billion (RM7 billion) investment (Phase One: RM1 billion and Phase Two: RM6 billion), will be injected in opening its production location in Southeast Asia and the first EV battery cell facility in Malaysia.
[RM1 = US$0.224]
The ground-breaking ceremony was graced by the Prime Minister of Malaysia, Ismail Sabri Yaakob, as well as Menteri Besar of Negeri Sembilan Aminuddin Harun, Ambassador of the Republic of Korea to Malaysia Lee Chi Beom, together with Deputy Chief Executive Officer (Investment Development) of the Malaysian Investment Development Authority (MIDA) Lim Bee Vian, and President and CEO of Samsung SDI Co Ltd (South Korea) Yoon Ho Choi.
Since 1991, parent company Samsung SDI Co Ltd (South Korea) has stamped its footprint in Malaysia, starting off with the manufacturing of Cathode Ray Tube (CRT) under Samsung Electron Devices (SEDM). SEDM later changed its name to Samsung SDIEM, embarking on Lithium-Ion Cell manufacturing in September 2011 until May 2022, where Samsung SDI Co Ltd (South Korea) invested a total of RM2.8 billion. In return, over RM2.5 billion of annual export was generated, creating 2,500 jobs through Samsung SDIEM.
Catering to global demand of electric vehicles, Samsung SDI Co Ltd invested an additional RM7 billion in Malaysia, setting up and operating an EV battery cell manufacturing plant in Seremban, operated by Samsung SDIEM.
“I take this opportunity to congratulate Samsung SDIEM on its success for the opening of its second factory and an increase in investment of RM7 billion,” said Ismail Sabri who noted the creation of 1,300 jobs for “Rakyat Malaysia” with the opening of the new factory.
“I appreciate the role played by Samsung SDIEM in developing the industry based on green technology. This is in line with the goals of the country to achieve a zero-carbon nation as early as 2050 as stated in the 12th Malaysia Plan strategy,” he added.
Minister of International Trade and Industry (MITI) Mohamed Azmin Ali remarked “Samsung SDIEM’s expansion aligns with the National Automotive Policy 2020 (NAP 2020) which addresses growing trends within the industry, thereby positioning Malaysia as the regional leader in the manufacturing, engineering, technology and sustainable development of the automotive sector.”
Menteri Besar Aminuddin stressed, “The State Government has always encouraged the entry of new quality, high-tech and high- impact investments, such as Samsung SDIEM to drive strong economic growth, especially in Negeri Sembilan, as outlined in the Negeri Sembilan Integrated Concept Master Plan 2021-2045. The State Government also applies the concept of investor-friendly policy in attracting new investment/expansion through INVEST NS and every new investment project will always be facilitated.”
He revealed that, during the period of 2017 to 2021, the Negeri Sembilan Government managed to increase the momentum of total investment in the state to:
2017 - RM 1.41 billion
2018 - RM 2.86 billion
2019 - RM 3.68 billion
2020 –RM 7.93 billion, the highest investment in 10 years, and,
2021-RM 5.76 billion, a decrease due to the impact of the Covid-19 pandemic.
“On this occasion, I would also like to thank MIDA for always helping and working with the State Government to ensure that Negeri Sembilan is always the destination of choice for investors,” he added.
In hailing the investment as a milestone for the automotive industry, Chief Executive Officer of MIDA Arham Abdul Rahman said, “This investment represents the confidence of multinational companies in Malaysia. MIDA is constantly looking for opportunities to collaborate and facilitate growth plans of such impactful companies that continue to bring advanced technology and further elevate the EV industry and its ecosystem in the country.”
In his welcoming speech, Ho Choi said, "All at Samsung SDI are working hard towards the goal to solidify our position as a Global Top Tier Company by 2030. If Samsung SDI is lucky enough to tap into our partners' competitiveness in addition to the support by the Malaysian Government, we will be able to reach our goal much quicker.”
Malaysia is the third largest automotive market in ASEAN, making the automotive industry a critical and burgeoning component of the country’s manufacturing sector. There are currently 28 manufacturing and assembly plants in Malaysia producing motor vehicles (passenger vehicles, commercial vehicles, motorcycles, and scooters); and a large pool of manufacturers of automotive parts and components. The automotive ecosystem also encompasses research and design, product and process development, materials management, and after-sales services.
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