Samsung and General Motors to Build EV Battery Factory in Indiana

By Heekyong Yang and David Shepardson

SEOUL/WASHINGTON (Reuters) – South Korea’s Samsung (KS:005930) SDI announced on Wednesday the completion of an agreement with General Motors (NYSE:GM) to establish a joint electric vehicle (EV) battery factory in Indiana.

The two companies plan to invest approximately $3.5 billion in a battery cell manufacturing plant, which will initially have an annual production capacity of 27 gigawatt hours (GWh).

Shares of Samsung SDI rose by 3.2% in morning trade, compared to a 0.3% decline in benchmark KOSPI.

This plan was first disclosed in April 2023, when GM and Samsung SDI stated the joint venture would exceed $3 billion and aimed for a production capacity of 30 GWh, with operations set to commence in 2026.

Samsung SDI indicated on Wednesday that the joint facility aims for mass production by 2027, with potential expansion of annual capacity to 36 GWh.

GM’s vice president of battery cell and pack, Kurt Kelty, noted he collaborated with Samsung SDI’s CEO to finalize the battery joint venture. Kelty highlighted that the plant will be equipped to expand up to 36 GWh, producing prismatic cells, which will enhance GM’s battery technology portfolio, aiming for improved performance and reduced costs in the long run.

Last year, GM indicated the Indiana plant would have production lines for both nickel-rich prismatic and cylindrical cells.

In June, GM reduced its annual EV production forecast, pivoting towards anticipated demand for its gasoline-powered models, projecting a revised upper limit of 250,000 EV units for 2024, down from an earlier estimate of 300,000 units.

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