Key Points
- Samsung SDI and GM finalize a $3.5 billion joint venture to build an EV battery plant in Indiana.
- The plant will have an initial capacity of 27 GWh, potentially expanding to 36 GWh.
- The plant will produce prismatic and cylindrical cells, enhancing GM’s battery technology portfolio.
- Samsung SDI shares rose 3.2% following the announcement, while GM recently revised its 2024 EV production forecast.
South Korea’s Samsung SDI and General Motors (GM) have officially completed an agreement to build a joint electric vehicle (EV) battery manufacturing plant in Indiana, USA. The $3.5 billion investment will create a factory with an initial annual production capacity of 27 gigawatt hours (GWh), with plans to expand to 36 GWh as the project grows. The plant will manufacture nickel-rich prismatic and cylindrical cells and is expected to begin mass production by 2027.
This announcement comes after the initial plan was revealed in April 2023, where the companies outlined a vision to spend over $3 billion on the joint venture, targeting a production capacity of 30 GWh. The finalized deal reflects an increased commitment, with potential expansion to accommodate the growing demand for EV batteries.
Kurt Kelty, GM’s vice president of battery cell and pack, emphasized the significance of the plant’s flexible production capabilities. The facility will focus on building prismatic cells, which are essential for improving battery performance and reducing costs and are key factors as the EV market continues to evolve.
The news of the finalized agreement had a positive impact on Samsung SDI’s shares, which rose by as much as 3.2% in morning trading. This contrasted with a 0.3% decline in the benchmark KOSPI index.
This joint venture is a critical component of GM’s strategy to enhance its battery technology portfolio as it competes in the competitive EV market. However, despite the investment in EV technology, GM recently adjusted its EV production forecast for 2024. The automaker now expects to produce up to 250,000 units, down from an earlier estimate of 300,000 units, as it continues to balance demand between EVs and gasoline-powered vehicles.
As the EV industry grows, this partnership between Samsung SDI and GM is positioned to play a pivotal role in meeting the increasing demand for high-performance, cost-effective EV batteries in the United States.
