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Samsung SDI and GM are investing $3.5B in a joint venture to construct a battery plant in Indiana, expected to create 1,600 jobs and produce 27 GWh by 2027.
On August 28, GM and Samsung SDI finalized an agreement to create a joint venture to supply electric vehicle batteries in the U.S. Key figures from both companies signed the agreement at Samsung SDI’s headquarters in Seoul.
The new joint venture will be located on a 680-acre plot in New Carlisle, Indiana, and is expected to create over 1,600 jobs in the area.
Samsung SDI & GM finalize agreement for Indiana battery cell manufacturing plant, initial annual capacity of 27GWh – enough for ~350,000 EVs. Mass production scheduled in 2027…NCA-based high-performance nickel-rich prismatic batteries…#lithium https://t.co/19ZIJuiTD6
— Howard Klein (@LithiumIonBull) August 28, 2024
Initially announced in April 2023, the partnership will now see an investment of around $3.5 billion. This investment exceeds the original estimate of $3 billion, reflecting the updated production goals. The new facility will start with a yearly production capacity of 27 GWh, aiming to reach 36 GWh with future expansions. Production is slated to begin in 2027.
The plant will manufacture nickel-rich prismatic batteries using NCA technology, which will be designed to improve the driving range and safety of GM’s upcoming electric vehicles. These batteries will contrast with the pouch-style packs in GM’s Ultium models, offering higher energy density and enhanced safety features.
This joint venture marks a significant move for Samsung SDI into the North American electric vehicle market, strengthening its presence and expanding its customer base. It also highlights GM’s commitment to expanding EV production despite a trend among other manufacturers to scale back investments and cancel models.
Battery Plant Granted Tax Incentives
The new plant reflects a broader increase in EV facility development, partly driven by tax incentives from the current U.S. administration. In Indiana, the St. Joseph County Council has already granted substantial tax incentives for the battery plant being developed by GM and Samsung SDI, according to The Detroit News. These incentives include 100% tax reductions and a $4.5 million annual infrastructure fee, potentially making this facility the largest in the region.
GM is building three more battery factories across the U.S., aiming for a combined annual capacity of 140 GWh. These include an existing plant in Lordstown, Ohio; a facility under construction in Spring Hill, Tennessee; and a new site planned for Lansing, Michigan.
The collaboration between GM and Samsung SDI was initiated after a Chevy Bolt electric vehicle recall, which was prompted by fire risks associated with LG batteries.
