Samsung SDI to Increase Procurement from Chinese Equipment Suppliers

On March 27, 2025, South Korean media outlet The Elec reported that Samsung SDI, a leading battery manufacturer, announced plans to increase the proportion of production equipment sourced from China. During a shareholder meeting, Vice President Kim Ik-hyeon stated that Chinese equipment manufacturers have significantly improved their technological capabilities and offer prices that are more competitive than those of local Korean suppliers.

Although Chinese companies have not yet joined Samsung's Supplier Partnership (SSP), their influence within the South Korean supply chain continues to grow, particularly in the cyclers sector.

The report highlighted that companies like Xian Dao Intelligent and Hangke Technology have established subsidiaries in South Korea, with their equipment technology nearing that of Korean standards. For instance, Xian Dao Intelligent provides stacking assembly equipment for Samsung's M production line at its Tianan factory, which specializes in producing new, compact batteries.

Insiders revealed that equipment prices from Chinese companies are 20% to 30% lower than those from Korean manufacturers, with shorter delivery times. Hangke Technology also supplies major Korean firms like LG Energy Solution and SK On.

Samsung SDI is significantly increasing its capital expenditure, with equipment investments projected to reach 6 trillion won (approximately 29.7 billion yuan) in 2024, with 30% allocated for the procurement of production equipment.

While Chinese equipment suppliers have not yet entered the SSP system, Kim acknowledged that their “quality is approaching Korean standards.” Industry analysts expect that as South Korea expands its battery production capacity, the market share of Chinese companies will continue to rise.