Samsung SDI announced on Wednesday that it has signed an agreement with General Motors (GM) to build a joint factory for battery cells for electric vehicles in the US state of Indiana.
The two companies plan to invest around $3.5 billion in the construction of the battery cell factory, which will initially have an annual production capacity of 27 gigawatt hours, according to a statement from Samsung SDI.
GM also confirmed the partnership in an official statement.
The partnership was first announced in April 2023. The joint venture was initially estimated to cost over $3 billion and target a production capacity of 30 GWh. Operations are scheduled to begin in 2026.
However, Samsung SDI has now announced that the plant is expected to begin mass production by 2027 and that possible expansion plans include increasing annual capacity to up to 36 GWh.
“It is my great pleasure to take the first step toward building a long-term, industry-leading partnership with GM in the U.S. electric vehicle market,” said Yoon-ho Choi, President and CEO of Samsung SDI.
“We will do our best to provide products with the highest levels of safety and quality, manufactured with our unrivaled technologies, to help GM extend its leadership position in the electric vehicle market.”
Kurt Kelty, GM’s vice president of battery cells and packs, confirmed that he met with Samsung SDI’s CEO to finalize the joint venture.
The new facility will produce high-performance nickel-rich prismatic batteries that are expected to be used in GM’s future electric vehicles. The prismatic cells are designed to increase performance and reduce costs.
“GM’s electric vehicle supply chain strategy focuses on scalability, resilience, sustainability and cost competitiveness. Our new relationship with Samsung SDI will help us achieve all of these goals,” said Mary Barra, GM Chairman and CEO.
“The cells we will build together will help us increase our EV capacity in North America to well over 1 million units per year,” Barra added.
GM had previously indicated that the Indiana plant would include production lines for both nickel-rich prismatic and cylindrical cells. Despite these ambitious plans, GM adjusted its annual electric vehicle production forecast in June, lowering the high end of its 2024 target from 300,000 units to 250,000 units as the automaker continues to rely on demand for its gasoline-powered vehicles.
The new plant is expected to have a capacity of more than 30 GWh, increasing GM’s total U.S. battery cell capacity to about 160 GWh at full production. The factory, which will be built on a 680-acre site in New Carlisle, is expected to create more than 1,600 jobs, supporting the local economy.
