Samsung SDI to Build Battery Factory with GM... Up to 50GWh Capacity

Likely to Sign MOU on the 8th... Investment Expected to Reach Up to 5 Trillion Won

Samsung SDI is partnering with the United States' largest automobile company, General Motors (GM), to build a battery factory.

According to industry sources on the 3rd, Samsung SDI and GM are scheduled to sign a memorandum of understanding (MOU) for the establishment of a joint factory on the 8th (local time) in Michigan, USA, with Samsung SDI President Choi Yoon-ho and GM CEO Mary Barra in attendance.

Both parties are reportedly in the final stages of discussions regarding production scale and factory location.

The joint factory's annual production capacity is expected to be around 30 to 50 gigawatt-hours (GWh). The investment amount from both companies is projected to be between 3 trillion and 5 trillion KRW.

This will be Samsung SDI's second joint factory with a local automaker in North America, following Stellantis.

Last year, Samsung SDI established a joint venture (JV) with Stellantis, the world's fourth-largest automaker, to build an electric vehicle battery production plant in Indiana, USA. The Stellantis joint factory has an annual capacity of 23 GWh and is scheduled to begin operations in 2025.

Samsung SDI Research Institute exterior view. [Photo by Samsung SDI]

With the implementation of the Inflation Reduction Act (IRA) elevating the status of 'K-battery,' Samsung SDI's supply volume in North America is also expected to increase.

GM, which has set a goal to sell 1 million electric vehicles annually in North America by 2025, is operating or constructing three joint factories with LG Energy Solution: the Ohio Joint Plant 1 (battery production capacity of 40 GWh), the Tennessee Joint Plant 2 (45 GWh), and the Michigan Joint Plant 3 (50 GWh), totaling an annual capacity of 145 GWh.

Initially, negotiations were underway for a fourth joint factory with LG Energy Solution, but they fell through.

Earlier in January, The Wall Street Journal (WSJ) reported that negotiations for the construction of the fourth battery joint factory between GM and LG Energy Solution ended without agreement, citing LG Energy Solution's lukewarm attitude toward additional investment in the U.S. as one of the reasons for the breakdown in talks.