Automotive

3.5 billion deal between Samsung Sdi and GM to produce batteries for electric cars

The investment - worth 3.5 billion - aims at mass production in 2027, with an annual capacity of up to 36 GWh, of high-performance nickel-rich prismatic batteries based on NCA, which should be used in the US carmaker's next electric vehicles. The production site will be in the state of Indiana

28 August 2024

Veduta generale della Samsung SDI battery factory a God, in Ungheria

2' min read

Agreement reached. South Korean Samsung Sdi and US carmaker GM announced that they have reached an agreement to build a joint electric vehicle battery factory in the US state of Indiana. The two companies will invest around $3.5 billion to build a battery cell production plant with an annual production capacity of 27 gigawatt-hours (GWh) initially, according to a release.

The plan was first announced in April 2023, when GM and Samsung Sdi said the joint venture would cost more than USD 3 billion, with a planned production capacity of 30 GWh and the start of operations in 2026. In fact, the South Korean battery manufacturer made it clear that the joint plant aims for mass production in 2027, with annual capacity potentially increasing to 36 GWh according to expansion plans. The joint venture will be based in New Carlisle, Indiana, on a 680-acre site, and is expected to create over 1,600 jobs.

"Based on our partnership with GM, the number one automaker in North America, we have created a premium battery manufacturing hub to lead the US electric vehicle market," said Samsung SDI CEO Yoon-ho Choi. Samsung Sdi will do its best to support GM in strengthening its leadership in the electric vehicle market with the company's PRiMX battery products featuring 'Super Gap' technology'.

"The Samsung Sdi joint venture is the latest example of GM's commitment to driving innovation in America," added GM President and CEO Mary Barra. "The electric vehicle market and GM sales will continue to grow as more customers experience our electric vehicles, the charging infrastructure develops and we expand into more segments.

The new plant will produce high-performance nickel-rich prismatic batteries based on NCA, which are expected to be used in upcoming GM electric vehicles. Samsung SDI's prismatic batteries,' the note explains, 'not only improve driving range due to their high energy density, but also improve safety and venting. Through the joint venture with GM, Samsung Sdi will then gain a foothold in the US electric vehicle market and increase its customer base.

However, in June, the US carmaker had cut its annual electric vehicle production forecast, as the dominance of demand remains on its petrol models. GM has, in fact, forecast that the top end of its 2024 electric production will be 250,000 units, down from a previous forecast of 300,000 units.