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On September 5, some industry insiders said that Samsung SDI, a subsidiary of Samsung Group in the electronic field, would provide cylindrical batteries to Jaguar Land Rover's electric vehicles (EVs).

In order to provide cylindrical batteries to the British automobile manufacturer (Jaguar Land Rover), it is reported in the industry that Samsung, a Korean battery manufacturer, will build a special production line to produce "21700" cylindrical batteries in the battery factory in Hungary.

Since last year, Samsung SDI has been competing fiercely with other battery manufacturers such as LG Chem and Panasonic in Japan to obtain battery contracts from Jaguar Land Rover. However, the company refused to confirm the authenticity of the information, saying that "we are unable to provide information related to the client company."

Jaguar Land Rover plans to install the 21700 battery on the next generation electric vehicle and put it on the market in 2020. The 21700 battery is the next generation battery technology, with a diameter of 21 mm and a height of 70 mm. The battery capacity is 50% higher than the 18650 battery. It is estimated that in the early stage, Samsung SDI will provide electric vehicle batteries with an energy of 5 gigawatt hours (GWh) every year, that is, about 300 million cylindrical cells. As we all know, the battery capacity of Samsung SDI is about 80 million cells per month. Compared with soft pack battery and square battery, cylindrical battery has obvious advantages in power efficiency.

Since Tesla began to use 21700 cylindrical batteries in electric vehicles, the batteries have become more and more popular. In addition, the cost of this cylindrical battery is relatively lower, so the demand for it is also growing.

According to the data of market research company B3, the demand for cylindrical batteries last year was 3.74 billion, accounting for 55% of the whole small battery market. This year, the demand is expected to exceed 4.6 billion. According to the report of Samsung Securities and Mirae Asset Daewoo, Samsung SDI is a leading manufacturer in the small battery market. It is estimated that the operating profit of its small battery business will exceed 400 billion won (about 356 million dollars).

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