Samsung SDI and GM Partner for $27 Billion Lithium-Ion Battery Cell Production
Samsung SDI and General Motors have announced a strategic partnership to establish a joint venture for the production of electric vehicle (EV) batteries in the United States. The agreement, signed by both companies' key executives, marks a significant step towards increasing Samsung SDI's customer base for its top-quality prismatic batteries.
The joint venture will be located in New Carlisle, Indiana, on a 680-acre site. Samsung SDI and General Motors will invest approximately $3.5 billion to build a new battery cell manufacturing plant, with an initial annual production capacity of 27GWh. The plant is expected to have an annual capacity of 36GWh under expansion plans.
The ceremony was held at Samsung SDI's office in Seoul, and the partnership is rooted in a shared commitment to the growth of the EV market. Samsung SDI CEO Yoon-ho Choi stated that the partnership will support General Motors in enhancing its leadership in the EV market.
Samsung SDI's prismatic batteries offer improved driving range due to their high energy density, and they also enhance safety with their lic exterior and venting system. The joint venture aims to lead the U.S. EV market with Samsung SDI's PRiMX battery products featuring 'Super Gap' technology.
The SAMSUNG SDI joint venture will produce NCA-based high-performance nickel-rich prismatic batteries, which will be deployed in upcoming GM electric vehicles. This strategic move is a part of both companies' efforts to stay aligned with the market pace and closely monitor the rapidly changing market conditions.
The joint venture is expected to create more than 1,600 jobs supporting the local economy, making it a significant boost for the region. Mary Barra, GM's CEO since 2014 and the leader involved in the establishment of the joint venture with SAMSUNG SDI for manufacturing batteries for electric vehicles in the USA, actively drives the company's initiatives in electrification and innovation.
Through this partnership, Samsung SDI aims to gain a foothold in the North American EV market, increasing its global presence in the EV sector. The production is targeted for mass production in 2027, and the strategic partnership between the two companies will continue to expand as they work towards a sustainable future in the EV market.
