Lithium-ion Battery | Samsung SDI and GM Finalize Battery Joint Venture in the US

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Lithium-ion Battery | Samsung SDI and GM Finalize Battery Joint Venture in the US

Date：2024-08-29

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Keyword tags： LiB EV 4680 NA

Samsung SDI, the world's sixth-largest battery manufacturer based in South Korea, announced on August 28th that it has reached an agreement with General Motors (GM) to invest approximately $3.5 billion in the construction of an electric vehicle battery factory in the United States. The initial production capacity will be 27GWh per year, with plans to expand to 36GWh annually and commence production in 2027.

The new battery joint venture plant will be located in New Carlisle, Indiana, spanning 680 acres, and will create over 1,600 jobs for the local economy. The facility will produce PRiMX high-nickel NMC prismatic batteries featuring Samsung's 'Super Gap' technology.

On August 27th, a signing ceremony was held at Samsung's office in South Korea, attended by executives from both companies, including Samsung SDI President and CEO Yoon-ho Choi and GM Executive Vice President of Battery Cells & Pack Business, Kurt Kelty. In April 2023, the two companies had already reached a preliminary agreement to establish a joint venture for power batteries in the U.S., with the initial goal of mass production by 2026.

The current plan for production to start in 2027 indicates a delay from the original schedule. In light of the EV market slowdown, GM has recently adjusted projects related to EV production. The first units of the Chevrolet Silverado EV and the GMC Sierra EV were originally scheduled to roll off the production line at GM's Orion Township plant in the second half of this year. However, in July, GM postponed the production start to mid-2026. Additionally, the GM Origin Cruise autonomous taxi project was entirely canceled.

GM Chair and CEO Mary Barra stated that the collaboration with Samsung SDI is the latest step in GM's commitment to driving innovation in America. “The EV market and GM sales will continue to grow as more customers experience our EVs, the charging infrastructure builds out and we expand into more segments.," she said.

Samsung SDI plans to invest 2.3 trillion won ($17 billion) by March 2028 to secure a 50.01% stake in the new battery joint venture plant. Furthermore, Samsung SDI is also in negotiations to produce 46mm large cylindrical batteries for the Cadillac Lyriq electric SUV at this new joint venture plant.

Samsung SDI has other electric plant projects in the North American region. In May 2023, Samsung SDI and Stellantis, the French-Italian automotive group headquartered in Amsterdam, announced plans to build a joint venture battery plant in Kokomo, Indiana, to support Stellantis's EV production plans in the U.S. This $2.5 billion investment battery plant will be built near Stellantis's engine and transmission plants in Kokomo. Previously, Stellantis stated it was investing $229 million to produce 8-speed transmissions for electric vehicles at its three plants in Kokomo. The Stellantis and Samsung SDI joint venture battery plant is expected to launch in 2025, with an annual capacity of 23GWh, expanding to 33GWh in the future, employing 1,400 workers.

Samsung SDI supplies EV batteries for BMW, Volkswagen, Audi, and Volvo (commercial vehicles), such as the Jeep Grand Cherokee and Wrangler, Ford Escape, and Lincoln Corsair models.

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