November 26, 2024

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Samsung SDI CEO Choi Yoon-ho (left) and Martin Lundstedt, CEO and president of Volvo Group, attend a cake-cutting ceremony to celebrate the fifth anniversary of their companies' partnership at the Korean firm's plant in Cheonan, South Chungcheong Province, last month. (Samsung SDI)

Samsung SDI said Tuesday it is bolstering ties with Volvo Trucks as the two companies celebrate the fifth anniversary of their partnership this year.

Samsung SDI CEO Choi Yoon-ho and Martin Lundstedt, CEO and president of Volvo Group, as well as other company officials participated in the celebratory event held at the Korean battery maker’s Cheonan plant in South Chungcheong Province last month.

Aside from battery-powered trucks, the two vowed to enhance their partnership on construction equipment and energy storage systems with the hopes of joining forces in sustainable mobility over the next 50 years.

The Korean battery maker started to supply battery cells for Volvo Trucks’ electric trucks and buses through the Germany-based battery pack company Akasol in 2018. After forging a strategic partnership in 2019, it has continued to directly supply battery cells and modules to Volvo Trucks.

Equipped with Samsung-made high-quality batteries, the truck manufacturer has expanded its presence in the midsized electric trucks market worldwide, according to Samsung SDI.

Volvo Trucks last year launched the FM Electric, the world’s first large-sized electric pickup truck, which is installed with around 28,000 units of Samsung SDI’s cylindrical high-nickel batteries.

In terms of profitability, the truck maker is also one of Samsung SDI's largest corporate clients as trucks require a larger number of battery cells compared to passenger vehicles, Samsung SDI added.

“Based on our ‘super-gap’ technology, we will deliver the best quality and highest level of safety in (EV) battery solutions to further strengthen our strategic partnership with Volvo Trucks that has lasted for the past five years,” said Samsung SDI CEO Choi Yoon-ho, in a statement.

Except for Volvo, Samsung SDI’s key customers include BMW, Volkswagen, General Motors and Stellantis.

Under the joint venture deal with Stellantis, it plans to set up two battery manufacturing plants in Indiana, which will become operational in 2025 and 2027, respectively. The company is also building another plant with GM in Indiana which is scheduled to be operational in 2026. The annual production capacity of the three plants is projected to reach a combined 97 gigawatt-hours.

By Byun Hye-jin (hyejin2@heraldcorp.com)