GM and Samsung SDI to open US cell plant in 2027

Samsung SDI and General Motors have agreed on the details of their battery joint venture in the US. The centrepiece of the cooperation is a new battery cell plant in the US state of Indiana, which is scheduled to go into operation in 2027 with an initial annual capacity of 27 GWh.

Image: Samsung SDI

Samsung SDI and GM made their plans official in April 2023 and have been working on finalising the key details ever since. It has now been decided that the joint venture will be located in New Carlisle in the US state of Indiana on a 275-hectare site and is expected to create more than 1,600 jobs. Both partners are prepared to invest a total of around 3.5 billion US dollars (around 3.14 billion euros). An increase in capacity from 27 to 36 GWh per year is planned at a later date.

With commissioning scheduled for 2027, the duo’s timetable has been pushed back slightly. In June 2023, an authority of the US state of Indiana (‘Indiana Economic Development Corporation’) was still talking about 2026. According to Samsung, however, the joint venture should “stay aligned with the market pace” anyway, which means that demand is being pushed back a little.

The factory will produce prismatic NCA battery cells with a high nickel content for future GM electric cars. Interestingly, Samsung states in its announcement that the joint venture with GM is intended to boost the Japanese company’s business in the US in general: “Through the joint venture with GM, Samsung SDI will gain a foothold in the North American EV market and strive to increase customers for its top-quality prismatic batteries with ensured safety.”

GM is also known to be building three cell plants in the US in cooperation with another player: LG Energy Solution. In January 2023, it was leaked that the US car manufacturer would not pursue plans for a fourth factory in cooperation with LG Energy Solution. Instead, it could build the plant planned for Indiana with another partner. This has long since materialised. Samsung SDI is seizing the opportunity to gain a foothold in the US electric car battery market.

“The Samsung SDI joint venture is the latest example of GM’s commitment to driving innovation in America,” said GM Chair and CEO Mary Barra. “The EV market and GM sales will continue to grow as more customers experience our EVs, the charging infrastructure builds out and we expand into more segments.”

This is encouraging news from GM, as the US car manufacturer has scrutinised several projects recently, given the weakening demand for electric cars. For example, the first units of the Chevrolet Silverado EV and the GMC Sierra EV were due to roll off the production line at GM’s Orion Township plant later this year. But in July, GM postponed the start of production to mid-2026, and the Origin Cruise robotaxi was cancelled altogether.

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