Samsung SDI and GM have decided to collaborate on a 27GHW battery cell production project.
In a significant move towards strengthening the electric vehicle (EV) industry in the United States, Samsung SDI and General Motors (GM) have established a joint venture to produce EV batteries. With a planned investment of around $3 billion, the companies aim to localize battery production and reduce reliance on foreign supply chains amid geopolitical tensions and tariffs on Chinese batteries.
The joint venture plant, located in New Carlisle, Indiana, on a 680-acre site, is set to initially focus on producing nickel-rich batteries. However, in response to GM’s updated battery strategy, the JV is being adapted to also manufacture lithium iron phosphate (LFP) batteries. This shift is crucial for serving new GM EV models like the Chevrolet Bolt and Equinox.
Samsung SDI's PRiMX battery products, featuring 'Super Gap' technology, will be a key component of this partnership. The batteries, which have a high energy density, improving driving range, also boast an exterior and venting system that enhances safety. The new plant will produce NCA-based high-performance nickel-rich prismatic batteries.
The joint venture is scheduled for mass production in 2027, with an initial annual production capacity of 27GWh. Under expansion plans, this capacity is expected to rise to 36GWh. The partnership is expected to create more than 1,600 jobs, supporting the local economy.
Both companies have been closely monitoring the rapidly changing market conditions and have decided to invest in the joint venture to stay aligned with the market pace. The agreement is rooted in a shared commitment to the growth of the EV market. Through the joint venture, SAMSUNG SDI aims to increase customers for its top-quality prismatic batteries, with these batteries being deployed in upcoming GM electric vehicles.
Key executives from both companies, including Samsung SDI CEO Yoon-ho Choi, attended the ceremony announcing the partnership, which took place at Samsung SDI's office in Seoul. The companies have also committed to continuing their strategic partnership onwards.
The Samsung SDI-GM joint venture represents a major US-based EV battery production initiative, designed to strengthen GM’s domestic supply while controlling costs and managing geopolitical risks. The partnership fits into GM’s revised battery approach under new leadership, shifting from exclusively nickel-rich cells towards incorporating cost-effective LFP batteries for certain EV models. This move is critical given tariffs on Chinese imports and geopolitical risks associated with suppliers like CATL.
Read also:
- Elon Musk Acquires 26,400 Megawatt Gas Turbines for Powering His AI Project, Overlooks Necessary Permits for Operation!
- U Power's strategic collaborator UNEX EV has inked a Letter of Intent with Didi Mobility to deploy UOTTA(TM) battery-swapping electric vehicles in Mexico.
- Toyota strikes a deal in Shanghai for a solely owned Lexus electric vehicle production plant.
- Gold nanorod market to reach a value of USD 573.3 million by 2034, expanding at a compound annual growth rate (CAGR) of 11.7%
