Samsung SDI announced Thursday it will invest 1.7 trillion won ($1.3 billion) in cylindrical battery lines in Malaysia to accelerates challenge to be global top tier company by 2030.

Samsung SDI said in a statement that it held a ceremony to mark groundbreaking of a second battery production facility equipped with state-of-art and innovative​ lines in Seremban, Malaysia on July 21.

With a total of 1.7 trillion won investment phase-by-phase until completion in 2025, Plant 2 at Samsung SDI Energy Malaysia (SDIEM) will start mass-production of PRiMX 21700 cylindrical batteries (21mm X 70 mm) in 2024.

Samsung SDI’s decision to construct the second factory in Malaysia comes as a strategy to meet the rising demand for cylindrical batteries recently. The batteries from the Plant 2 will be used in various applications ranging from electrical tools, micro-mobility to electric vehicles.

Established in 1991, SDIEM is the first overseas business entity of Samsung SDI. The company started off with producing braun tubes in its early years before shifting to batteries in 2012.

“Today’s groundbreaking ceremony will serve as a starting point for realizing our vision to become a Global Top Tier Company by 2030. With successful completion and early stabilization of Plant 2, we will make SDIEM the center of the global battery industry. With the support from the Malaysian state government and partner companies for best quality, we will be able to realize the vision much faster,” said Samsung SDI president and Chief Executive Officer YooNho Choi.

During the congratulatory remarks, Negeri Sembilan Menteri Besar Aminuddin Harun said investments from high-impact industries, such as Samsung SDIEM are integral to our vision of driving robust economic growth in Malaysia and Negeri Sembilan, which is outlined in our Malaysia Vision Valley 2.0 plan.

“Not only is this testament to our economic potential in Negeri Sembilan, but also the investment-friendly policies implemented by the State. Samsung SDIEM’s investment to be the pioneer in Electric Vehicle (EV) Battery Cell manufacturing in Seremban will continue to create jobs for the youth and spur more opportunities for local businesses,” he said.

According to the statement, the global cylindrical battery market is forecast to grow from 10.17 billion cells in 2022 to 15.11 billion cells in 2027, showing an annual growth rate of 8 percent on average, as demand expands from electrical tools, micro-mobility to electric vehicles and energy storage systems.

India’s Ola to invest $500M in battery innovation and indigenous cell R&D