South Africa

Samsung to invest $849m to expand EV battery plant in Hungary

Samsung to invest $849m to expand EV battery plant in Hungary

South Korean manufacturer Samsung SDI Co Ltd said it will invest 942 billion won (roughly $849mn or R12,381,349,050) to expand its electric vehicle (EV) battery factory in Hungary, a company official told Reuters on Wednesday.

The firm, whose EV customers include Ford Motor Co and BMW AG, is also considering building another EV battery plant in the central European country, though no timeline for construction has been decided, the official said.

Samsung SDI, an affiliate of South Korean tech giant Samsung Electronics Co Ltd, began production at the Hungary plant in 2018, producing batteries for 50,000 EVs a year.

In a regulatory filing on Tuesday, it said its wholly owned Hungary subsidiary will raise capital by issuing shares worth 404 billion won (roughly R5,298,476,160). Samsung SDI will also guarantee debt worth 538 billion won (roughly R7,055,203,418) for its Hungary subsidiary to finance investment.

Samsung SDI also has EV battery plants in South Korea and China.