Samsung no longer interested in entering EV market

17 May 2022

Many global manufacturing giants are joining the EV race, we have LG and Panasonic manufacturing batteries, we have Foxconn making cars for Fisker, we have Sony entering the market with its own vehicle. No surprise then that Samsung wanted in on the EV game and early rumors were that indeed it was considering designing entire cars.

It turns out Samsung has changed its mind, the decision was made to no longer pursue plans of direct EV manufacturing. Samsung has long standing agreements and joint ventures with many companies and entering the EV market would de facto turn those partners into competitors.

Like Apple, which previously battled with Samsung in courts around the globe for many a year. With Apple increasingly looking at manufacturing low volume luxury vehicles with price tags in excess of $100,000, Samsung clearly wants to avoid potential conflict. If anything, the decision to stop pursuing EV plans by Samsung only gives more weight to Apple’s plans.

Another reason for the change of heart is how crowded the market already is. By 2025 in the US alone there will be at least 100 EV models available. Starting mass production at this stage will mean there's already stiff competition, which will make it much harder to turn a profit according to Samsung’s officials.

Samsung will focus on its current business with supplying components to many manufacturers, it already sells EV batteries to BMW and is in talks with Stellantis. It supplies components to Tesla and it sells displays to many car manufacturers.

Samsung believes there is no point to risk relationships with customers and wants to focus on maintaining partnerships with its corporate clients. It is betting on its plans for sustainable foundry business that is supplying chips to a range of customers as a more profitable venture.

Source