South Korea’s Samsung SDI has confirmed a $3.5 billion agreement with General Motors to establish a joint electric vehicle (EV) battery manufacturing facility in Indiana. This new plant, which will initially produce 27 gigawatt hours (GWh) of battery cells annually, represents a significant investment in the U.S. EV sector. The factory’s production is scheduled to start in 2027, with potential expansion to 36 GWh.
The partnership was first announced in April 2023, with an initial projected cost exceeding $3 billion. This agreement aims to enhance GM’s battery technology portfolio by including prismatic cells and potentially cylindrical cells. The plant is designed to support both types, contributing to future improvements in performance and cost reduction.
The announcement led to a 3.2% increase in Samsung SDI’s shares, contrasting with a slight decline in the KOSPI index. Despite the positive development, GM has recently revised its 2024 EV production forecast downward to 250,000 units from 300,000, reflecting a shift in focus towards gasoline-powered vehicles.
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