South Korean battery maker Samsung SDI Co. will prepare to establish its own factory for electric vehicle (EV) batteries in the United States and expand its joint ventures with local automakers, according to its chief executive officer on Wednesday.

“As the EV battery market is expected to continue growing, we plan to expand JVs and prepare for establishing our standalone factory,” Samsung SDI CEO Choi Yoon-ho told reporters after the company’s shareholders‘ meeting held in Seoul on Wednesday.

Samsung SDI is currently constructing two joint venture factories with Stellantis and one with GM in Indiana.

Regarding the timing of operations at the Stellantis JV factory, Choi said: “We are fully prepared to start mass production at the earliest possible time. The specific start date will be shared once finalized with our customers.“

Choi also discussed the batteries to be produced at the GM joint venture factory.

”We have been preparing to produce both prismatic and cylindrical batteries simultaneously since the signing of the memorandum of understanding (MOU) and the plan is still ongoing,” he said.

On March 6, Choi said the company can sufficiently mass-produce 46mm cylindrical batteries by early next year.

Highlighting Samsung SDI’s prowess in the solid-state battery sector, Choi emphasized, “We believe we excel and lead in the solid-state battery field.”

Choi noted that the company plans to initiate mass production of solid-state batteries by 2027 as planned.

“We set up a pilot line for solid-state batteries in Suwon last year and are currently supplying samples to multiple finished carmakers for evaluation,” he said. “This year, we will continue to progress smoothly with mass production by establishing the core material supply chain and securing production capabilities for solid-state batteries.”

During the meeting, some shareholders pointed out that Samsung SDI‘s dividends were insufficient and the stock price was low.

“We will continue the existing shareholder return policy, including basic dividends, until the end of this year, and prepare new policies according to the situation next year,” Choi said.

The shareholders approved the plan of providing a dividend of 1,000 won ($0.75) per common share and 1,050 won per preferred share.

By Jung You-jung, Kim Hee-su, and Minu Kim

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