In This Article:
General Motors Company GM has finalized a joint venture (JV) with Samsung SDI, a South Korea-based battery and electronic materials manufacturer. Per the JV, which was initially announced a year ago, the companies are investing around $3.5 billion to construct an electric vehicle (EV) battery plant with an annual capacity of up to 36 gigawatt-hours in northern Indiana. However, due to slower-than-expected consumer adoption of EVs, the companies will delay battery cell production until 2027, after initially planning to start in 2025, later pushing it to 2026. The 2027 production start date reflects GM’s adjustments to align with its EV demand forecasts.
Although EV sales in the United States are increasing, concerns about insufficient charging infrastructure and higher EV prices have caused some slowdown. Per Kelley Blue Book, despite the slowdown, EV sales in the United States rose 11.3% in the second quarter of 2024 compared with the previous year. It reached a record high of 330,463 units, driven by better availability, increased discounts and more leasing options.
Per Kurt Kelty, vice president of battery cell and pack GM, the Indiana plant will produce prismatic cells to enhance performance and reduce costs for GM in the future. Per a previous Free Press report, the plant will be situated on a 686-acre site in New Carlisle, Indiana, approximately 15 miles west of South Bend. This location was initially considered in August 2022 for Ultium Cells LLC, GM's other joint venture with LG Energy Solution. General Motors already operates two battery plants with LG, located in Lordstown, OH, and Spring Hill, TN, with a third under construction in Lansing. However, the company decided to part ways with LG on the fourth plant in January 2023.
Per Mary Barra, CEO of GM, the partnership with Samsung will help the automaker achieve its EV supply chain strategy, which is focused on scalability, resilience, sustainability and cost-effectiveness. The battery cells produced through this partnership will enable GM to increase its EV production capacity in North America to more than one million units per year.
The battery cells produced at General Motors’ existing plants power its latest EV models, including the Cadillac Lyriq and Celestiq, Chevrolet Blazer, Equinox, Silverado EVs, GMC Hummer pickup and SUV, and the newly launched GMC Sierra EV. These cells will also be used in upcoming Cadillac Escalade IQ and Cadillac Optiq EVs, which are set to release later this year. Collaborations with LG Energy Solution and Samsung SDI are central to GM's strategy of developing a North American-centric technology and manufacturing ecosystem to enhance the quality and affordability of EVs for their customers.