Samsung SDI Energy Malaysia Invests RM7 Billion For Its First EV Battery Cell Manufacturing Facility In Malaysia
Negeri Sembilan, Malaysia, 21 July 2022 – Samsung SDI Energy Malaysia Sdn. Bhd. (“Samsung SDIEM”) scored a significant milestone today with the opening of its Phase Two EV battery cell manufacturing facility in Seremban. The cumulative RM7 billion investment (Phase One: RM1 billion and Phase Two: RM6 billion), is injected by the company in opening its first production location in Southeast Asia and the first EV battery cell facility in Malaysia.
The momentous ground-breaking ceremony was graced by the Prime Minister of Malaysia Y.A.B. Dato’ Sri Ismail Sabri Yaakob, as well as Menteri Besar of Negeri Sembilan Y.A.B. Dato’ Seri Haji Aminuddin Bin Harun, Ambassador of the Republic of Korea to Malaysia His Excellency Lee Chi Beom, together with Deputy Chief Executive Officer (Investment Development) of the Malaysian Investment Development Authority (MIDA) Ms. Lim Bee Vian, and President and CEO of Samsung SDI Co. Ltd. (South Korea).Mr. 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 Malaysian workforce through Samsung SDIEM.
Catering to the worldwide 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 at Samsung SDIEM.
In his officiating speech, the Prime Minister said: “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. With the construction of this new factory, it will create 1,300 job opportunities for “Rakyat Malaysia”. 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”.
Commending the company’s expansion as having strategic impact on the regional front, Senior Minister and Minister of International Trade and Industry (MITI) YB. Dato’ Seri 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. The opening of this assembly facility in Negeri Sembilan will benefit more Malaysian talents, especially high-skilled engineers in terms of capacity building as the company expands their footprint in the ASEAN region.”
Menteri Besar of Negeri Sembilan, Dato’ Seri Haji Aminuddin reiterated “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 to simplify the affairs of each project that invests in Negeri Sembilan. During the period of 2017 to 2021, the Negeri Sembilan Government managed to increase the momentum of total investment in the state where:
Year 2017 – RM 1.41 billion
Year 2018 – RM 2.86 billion
Year 2019 – RM 3.68 billion
Year 2020 –RM 7.93 billion, is the highest achievement in the history of 10 years, and
Year 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.”
In hailing the investment as a milestone for the automotive industry, Chief Executive Officer of MIDA Datuk Arham Abdul Rahman said, “This investment represents the confidence of multinational companies in Malaysia. We are honoured to have Samsung SDIEM to venture into high value investment 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.”
Ambassador of the Republic of Korea to Malaysia, His Excellency Lee Chi Beom, commended Samsung SDI’s decision to continue investing in Malaysia and remarked that this is indeed a significant moment for both nations in further nurturing its robust bilateral relationship.
In his welcoming speech, President and CEO of Samsung SDI Co. Ltd. (South Korea) Mr. Yoon 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 than planned”.
In seeking active support from the Malaysian Government, including securing and nurturing local talents as well as early stabilisation for a successful factory construction and operation, he assured that Samsung SDI would comply with safety and basic compliance during construction of projects as well as actively engage in Environmental, Social, and Governance (ESG) management to pre-emptively respond to climate change.
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 huge 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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About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.
About Samsung SDI
Samsung SDI is a manufacturer of rechargeable batteries for the IT industry, automobiles and energy storage systems (ESS), as well as cutting-edge materials used to produce semiconductors and displays. Our executive managers and staff members focus efforts to develop the next generation’s growth drivers in order to secure Samsung SDI’s place as a creative leader in the energy and cutting-edge materials industry.
Media contacts:
MIDA
Mr. Nazuki Abdullah
Director, Transportation Technology Division, MIDA
Email: [email protected] | DL: + 603- 2267 6688
Samsung SDI
Mr. Satiaseelan Muniandi
Director
Email: [email protected] | Tel: + 06-6701707
