Samsung SDI will use more Chinese equipment for battery production
Samsung SDI, Samsung's battery manufacturing subsidiary, plans to increase its use of equipment from Chinese suppliers.
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The decision is due to the improved quality of Chinese manufacturers' products and their competitive prices, which are now comparable to South Korean companies' offerings. Samsung SDI Executive Vice President Kim Ik Hyeon said that Chinese companies have reached a high level of technical sophistication, making them attractive partners for co-operation.
Chinese manufacturers such as Zhejiang Hangke already supply equipment to all major South Korean battery makers, including Samsung SDI, LG Energy and SK. This allows Samsung SDI to cut costs and improve margins by utilising affordable equipment. However, the Chinese companies will not be included in Samsung SDI's Partner Association, membership of which is reserved for top suppliers.
Analysts predict that the influence of Chinese suppliers on South Korea's battery supply chain will grow, especially in the bicycle field. This is not only because of their prices, but also because of product quality, which is already close to the level of South Korean competitors.
Source: thelec
