Samsung SDI, a South Korean battery maker, has finalized an agreement with General Motors (GM) to build a joint electric vehicle (EV) battery factory in Indiana, USA. The two companies announced their plan to invest approximately $3.5 billion in constructing a battery cell manufacturing plant, which will initially have an annual production capacity of 27 gigawatt hours (GWh). This development marks a significant step in both companies’ efforts to enhance their electric vehicle offerings.
Shares of Samsung SDI saw a rise of up to 3.2% in morning trading, contrasting with a 0.3% decline in the benchmark KOSPI index. The joint venture was first revealed in April 2023, when GM and Samsung SDI indicated that the project would cost more than $3 billion and have a planned production capacity of 30 GWh. Initial operations are set to begin in 2026, with mass production targeted for 2027. There are also expansion plans that could potentially increase the plant’s annual capacity to 36 GWh.
Kurt Kelty, General Motors’ vice president of battery cell and pack, joined Samsung SDI’s CEO to finalize the venture. Kelty emphasized that the plant would be equipped to expand up to 36 GWh, focusing on producing prismatic battery cells. These cells will be integrated into GM’s battery technology portfolio, aiming to improve vehicle performance and reduce production costs.
Last year, GM announced that the Indiana facility would feature production lines capable of manufacturing both nickel-rich prismatic and cylindrical cells. Despite this investment in EV technology, GM recently adjusted its EV production forecast, citing stronger demand for gasoline-powered vehicles. The company now expects its 2024 EV production to reach up to 250,000 units, down from an earlier forecast of 300,000 units.
Featured Image courtesy of FMT
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