SEOUL/WASHINGTON (Reuters) – South Korea’s Samsung SDI said on Wednesday it had signed an agreement with General Motors to build a joint electric vehicle (EV) battery factory in the U.S. state of Indiana.
The two companies will invest around $3.5 billion to build a battery cell manufacturing factory with an initial annual production capacity of 27 gigawatt hours (GWh), Samsung SDI said in a statement.
Samsung SDI shares rose as much as 3.2 percent in morning trading, while the benchmark KOSPI KS.11 fell 0.3 percent.
The plan was first announced in April 2023, when GM and Samsung SDI said the joint venture would cost more than $3 billion, have a planned production capacity of 30 GWh, and begin operations in 2026.
The South Korean battery maker said on Wednesday that the joint plant aims to begin mass production in 2027 and that annual capacity could potentially rise to 36 GWh as part of expansion plans.
Kurt Kelty, GM’s vice president of battery cells and packs, said he has teamed up with Samsung SDI’s CEO to complete the battery joint venture.
Kelty said the plant will “have the capacity to expand to up to 36 GWh and build prismatic cells that complement our portfolio of battery technologies and will help us continue to increase performance and reduce costs in the future.”
Last year, GM announced that the Indiana plant would have production lines to manufacture both prismatic and cylindrical nickel-rich cells.
In June, GM lowered its annual electric vehicle production forecast as the automaker banks on demand for its gasoline-powered models. GM forecast production of 250,000 electric vehicles in 2024, compared to a previous forecast of 300,000 units.
Samsung SDI GM signs $35 billion deal to build electric vehicle battery plant in the US
