The expansion will support the company’s fast-growing lithium-ion battery business for electric vehicles, leading to a doubling of manufacturing capacity with the addition of a second production line, the memo said.
A $5 million performance-based grant, approved Tuesday by the Michigan Strategic Fund board, was needed to keep the investment from going to Kokomo, Ind., where the company is teaming with automaker Stellantis on a 34-gigawatt hour battery factory expected to launch in 2025.
“Additionally, the Company is considering further expansions in the Midwest United States to broaden their footprint,” the memo said. The grant “will help address the cost disadvantage of locating the project in Michigan when compared to the competing sites.”
Samsung SDI moved into its Auburn Hills location in 2019, investing $62.7 million and creating 461 jobs. That project received a$10 million MEDC grant as well as a property tax abatement from the city of Auburn Hills and a 6-mill State Education Tax abatement.
For the expansion, the company will also benefit from free advertising from the city on electronic billboards along I-75, and Oakland County Michigan Works! pledged to help in the way of workforce training.
Samsung SDI America has its North American headquarters in Auburn Hills and an office in San Jose, Calif., with global headquarters in Yongin, South Korea.