Umicore and Samsung SDI signed a supply agreement. The transaction is scheduled to begin in 2020. Umicore will supply Samsung SDI with nearly 80,000 metric tons of NCM materials. Samsung SDI will use these materials to produce automotive applications and energy storage systems. Umicore CEO Marc Grynberg stated that the (Agreement) underscores that a sustainable battery value chain is taking shape and shows that major industry players are committed to supporting the continuous penetration of electric vehicles in the growing global demand .
The transparency of the raw material supply chain is still the focus of attention in the field of battery metals. Most of the key elements of lithium-ion batteries used to power electric vehicles are mined in the Democratic Republic of Congo, where mining is often associated with child labor and human rights violations. "Responsible sourcing remains a key topic in the industry. For automakers, it is most important to conduct proper due diligence to ensure that purchased materials are sustainable," Cass, senior analyst at Benchmark Mineral Intelligence Pa Rawls said.
Just one month before Umicore released this news, the company said it would join hands with South Korean battery manufacturer LG Chem to provide cathode materials for battery production from 2020. The Belgian manufacturer of battery materials will provide LG Chem's factory with a total of 125,000 metric tons of materials from Umicore's plants in Poland, South Korea and China for battery production.
Most of the cathode materials for LG Chem batteries will come from Umicore ’s new cathode factory in Poland, which will be commissioned by the end of 2020. As the EU continues to promote the development of batteries in the region, Umicore will invest $ 370 million in manufacturing plants. As Europe's largest producer of battery materials for the electric vehicle industry, Umicore signed a long-term agreement with Glencore earlier this year to obtain cobalt from the mining giant's business in the Democratic Republic of Congo.
The company also acquired the Kokkola cobalt refining and cathode precursor business in Finland from a subsidiary of Freeport-McMoRan for $ 150 million. While Samsung entered 2019, Samsung SDI significantly increased its layout in the lithium battery industry chain, restarted capacity expansion plans, and expanded battery factories in Europe and China.
Recently, it was reported that Samsung SDI planned to invest 390 billion Hungarian forints (about 9.2 billion yuan) to expand its Hungarian power battery plant. After the expansion, the annual production capacity will meet the battery demand of 50,000 electric vehicles.
Obviously, Samsung SDI is accelerating the layout of its battery industry and has confidence in its future battery business development. Thanks to the rapid growth of the new energy vehicle market and the advancement of the European automotive electrification strategy, Samsung SDI's power battery business has also achieved a major breakthrough.
In July 2019, Samsung SDI and the Swedish Volvo Group announced a strategic alliance to provide battery cells and battery modules to meet Volvo Group's electric truck production needs. In September, Samsung SDI signed an agreement with German power battery system manufacturer Akasol to supply lithium battery cells and modules for electric commercial vehicle power systems.
According to the agreement, Samsung SDI will supply Akasol with a total capacity of 13GWh lithium battery cells and modules from 2020 to 2027.