The joint facility aims to begin mass production in 2027, with plans to boost its annual capacity to 36 GWh.
Samsung SDI Co. ranked as the sixth largest battery manufacturer globally, and General Motors Co., the automaker in the United States, have announced plans to establish a $3.5 billion battery cell production facility. This new plant, set to be located in New Carlisle, Indiana, positions itself within the world’s third-largest electric vehicle market, signalling robust expectations for sustained growth in the sector despite recent downturns.
On Wednesday, Samsung SDI revealed its collaboration with GM to construct a factory designed to churn out 27 gigawatt-hours (GWh) of battery capacity annually—sufficient to power approximately 350,000 electric vehicles (EVs) starting in 2027. Furthermore, projections indicate a potential increase in production capacity to 36 GWh, as per details from the South Korean battery manufacturer.
Additionally, Samsung SDI plans to invest approximately 2.3 trillion won ($1.7 billion) by March 2028 to acquire a majority stake of 50.01% in this joint venture.
The origins of this partnership trace back to March 2023, when Samsung SDI and GM formalized their intentions through a memorandum of understanding, targeting the commencement of mass production by 2026. Samsung SDI CEO Choi Yoon-ho highlighted the strategic nature of the partnership, emphasizing the establishment of a state-of-the-art battery production hub aimed at dominating the US EV market.
In conjunction with these developments, Samsung SDI is engaging in discussions with the manufacturers of the Cadillac Lyriq electric SUV to potentially produce cylindrical batteries measuring 46 millimetres in diameter at the Indiana facility.
Despite the broader challenges faced by the global EV and battery sectors, GM CEO Mary Barra remains optimistic about the future. She underscored the joint venture with Samsung SDI as a testament to GM’s dedication to fostering innovation within the American market. Barra anticipates continued growth in EV sales and market expansion as consumer exposure to GM’s electric models increases and the supporting charging infrastructure develops.
The upcoming facility is set to focus on the production of nickel-cobalt-aluminum (NCA)-based, nickel-rich prismatic batteries. These batteries are designed to offer enhanced energy density, thereby extending driving ranges and improved safety features through their robust metallic casings and advanced venting systems. Samsung SDI expressed confidence that this joint venture will solidify its presence in the North American EV market and attract a wider customer base for its high-quality, safety-assured prismatic batteries.
Moreover, Samsung SDI is also expanding its US footprint by building another battery plant in collaboration with Stellantis N.V., the fourth-largest automaker globally, in Indiana, and plans to establish additional facilities in the United States.
