World’s sixth largest battery manufacturer, South Korea’s Samsung SDI, announced on Wednesday (August 28) that it has reached an agreement with General Motors to jointly build an electric vehicle (EV) battery plant in Indiana, USA.
In a statement, Samsung SDI said the two companies will invest around $3.5 billion to construct a battery production plant with an initial annual capacity of 27 gigawatt-hours (GWh).
The South Korean battery manufacturer indicated that the joint venture plant aims to achieve mass production by 2027, with a potential capacity increase to 36 GWh according to expansion plans.
The company stated that the new plant is planned to produce high-performance prism batteries based on nickel-cobalt-aluminum (NCA) chemistry, which are expected to be integrated into upcoming General Motors electric vehicles.
Furthermore, Samsung SDI plans to invest $1.7 billion by March 2028 to secure a 50.01% stake in the joint venture factory.
Kurt Kelty, Vice President of General Motors for battery and battery systems, expressed that he and the CEO of Samsung SDI have finalized the battery joint venture project.
Kelty mentioned, “The factory will have the capability to expand to 36 GWh, manufacturing prism-shaped batteries, which will complement our battery technology portfolio, helping us to further enhance performance and reduce costs in the future.”
General Motors CEO Mary Barra expressed optimism about the prospects of the collaboration. In a press release from Samsung SDI, she stated, “The Samsung SDI joint venture is the latest example of General Motors’ commitment to driving innovation in the United States.”
“As more customers experience our electric vehicles, the development of charging infrastructure, and our expansion into more niche markets, the electric vehicle market and General Motors’ sales will continue to grow,” she added.
Samsung SDI’s stock rose by 3.2% in morning trading, while the benchmark South Korean Composite Stock Price Index (KOSPI) fell by 0.3%.
The project was initially announced in April 2023, where General Motors and Samsung SDI stated that the joint venture would cost over $3 billion and have a capacity of 30 GWh, set to commence operations in 2026.
In June of this year, General Motors revised down its annual production expectations for electric vehicles due to the manufacturer’s reliance on demand for gasoline-powered vehicles. General Motors anticipates producing 250,000 electric vehicles in 2024, lower than the previous forecast of 300,000 vehicles.
(*This article referenced reports from Reuters and the Korean Economic Daily.)