Korean technology giant, Samsung SDI, and General Motors (GM) have completed an agreement to build a joint electric vehicle (EV) battery manufacturing facility worth $3.5 billion in the state of Indiana, United States.
The project is set to have an initial production capacity of 27 gigawatt hours (GWh) per year. Mass production is targeted to begin in 2027.
The joint venture, first announced in April 2023, could potentially see the facility’s capacity rise to 36 GWh annually. The Indiana plant will manufacture nickel-rich prismatic and cylindrical battery cells, boosting GM’s battery technology portfolio.
Kurt Kelty, GM’s Vice President of Battery Cell and Pack, noted that the new facility will allow GM to expand its battery technology capabilities, increase performance, and reduce costs as the company scales up its EV production.
Despite cutting its 2024 EV production forecast from 300,000 units to 250,000 units in June, GM remains committed to its long-term EV strategy. The collaboration with Samsung SDI strengthens its supply chain as it seeks to dominate the rapidly growing EV market.
Shares of Samsung SDI rose 3.2% in early trading following the announcement, outperforming the KOSPI benchmark, which fell 0.3%. The partnership marks a significant step forward for both companies as they continue to push for leadership in the EV industry.
