Samsung SDI, a South Korean company, announced that it had finalised a deal with General Motors to construct a joint electric vehicle (EV) battery plant in the American state of Indiana.
According to a statement from Samsung SDI, the two businesses will invest roughly USD 3.55 billion to construct a battery cell manufacturing facility with an initial production capacity of 27 gigawatt hours (GWh).
Shares of Samsung SDI rose as much as 3.2% in morning trade, versus benchmark KOSPI’s 0.3% fall.
GM and Samsung SDI first revealed the plan in April 2023, announcing that the joint venture would require over USD 3 billion, have a 30 GWh production capacity, and start operations in 2026.
The joint plant is expected to reach mass production in 2027, and expansion plans could potentially increase annual capacity to 36 GWh, according to the South Korean battery manufacturer.
The CEO of Samsung SDI and Kurt Kelty, the General Motors vice president of battery cell and pack, said they had met to complete the battery joint venture.
Kelty said the plant will have the “capability to expand up to 36 GWh, building prismatic cells, which will be added to our battery technology portfolio, helping us to continue to increase performance and lower costs in the future.”
GM stated last year that production lines for both cylindrical and prismatic cells rich in nickel were anticipated at the Indiana facility.
As the automaker relies on demand from its gasoline-powered models, GM lowered its annual forecast for EV production in June. GM revised down its earlier estimate of 300,000 units to 250,000 units as the upper end of its 2024 electric vehicle production.
Meanwhile, in an effort to stave off competition from Chinese competitors, Samsung claims that it will offer seven years’ worth of Tizen operating system updates for its more recent AI-powered TVs.