Samsung SDI, General Motors discuss possible cooperation

Samsung SDI CEO Choi Yoon-ho speaks during the company's annual general meeting on March 15 in southern Seoul. [SAMSUNG SDI]

The CEO of Samsung SDI confirmed that the company is discussing a mid- to long-term partnership with General Motors, following reports that the battery maker and the U.S. automaker signed a memorandum of understanding to build a battery plant in the United States.

“I visited the United States to have a close discussion with GM for the mid- to long-term cooperation,” said Samsung SDI CEO Choi Yoon-ho on his way out of the annual general meeting Wednesday, without specifically answering whether or not the two parties signed an agreement.

The head of the Yongin, Gyeonggi–based battery maker hinted at the possibility of making lithium iron phosphate, or LFP, batteries to cater to clients pursuing affordability and safety.

“LFP batteries represent an important platform, and we are working hard for the LFP range in order to meet the needs of different clients,” the CEO said.

LFP batteries have a lesser fire risk as they do not contain nickel. Around 95 percent of the LFP battery market is controlled by Chinese manufacturers including CATL.

Domestic rivals LG Energy Solution and SK On have both announced plans to manufacture the cheaper type of EV battery.

The battery maker recently brought in equipment required to produce its 46 millimeter cylindrical-shaped battery, Choi said, adding that it is in talks with multiple potential clients to supply the high-performing batteries.

At the shareholders meeting, the company reappointed board directors Jun Young-hyun, Kwon Oh-kyong, Lee Mee-kyung and Kim Duk-hyun.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]