2027 Target of 27GWh Mass Production
Capacity Expansion to 36GWh in the Future
Choi Yoon-ho, President and CEO of Samsung SDI (center), and Kurt Kelty, GM Vice President in charge of Battery Cell & Pack (right), are posing for a commemorative photo at the signing ceremony for the establishment of the Samsung SDI-GM electric vehicle battery joint venture held on the 27th at Samsung Seocho Building. Photo by Samsung SDI
Samsung SDI and General Motors (GM) have finalized the establishment of a joint venture for electric vehicle battery production in the United States. Despite the electric vehicle chasm (a temporary stagnation in a growing industry), Samsung SDI plans to continue with its scheduled investments.
On the 28th, Samsung SDI announced that it had signed a definitive agreement to establish a joint venture with GM for electric vehicle battery production in the U.S. The signing ceremony was held at Samsung’s Seocho office in Seoul, attended by key executives from both companies, including Samsung SDI CEO Choi Yoon-ho.
Last March, the two companies signed a memorandum of understanding (MOU) to establish the joint venture and have since been negotiating details such as site selection. According to the finalized plan, Samsung SDI and GM will invest approximately $3.5 billion (about 4.655 trillion KRW) to build a factory with an initial annual production capacity of 27 GWh, aiming for mass production by 2027. The production capacity is expected to expand to 36 GWh in the future.
The joint venture’s location has been confirmed as New Carlisle, Indiana, with a site area of 2.77 million square meters (about 840,000 pyeong). The establishment of the joint venture is also expected to create more than 1,600 jobs.
Samsung SDI has faced criticism for being slower than competing battery companies in investing in new facilities. Although the North American electric vehicle market was expected to fully bloom by 2025, the only plant scheduled to operate by next year was the Indiana Plant 1, a joint venture with Stellantis. However, as the growth period of the electric vehicle market has slowed more than expected due to the chasm, Samsung SDI’s cautious investment strategy is now seen as the right approach.
In March last year, Choi Yoon-ho, President and CEO of Samsung SDI (right), and Mary Barra, Chairwoman of GM, signed a memorandum of understanding (MOU) for the establishment of a joint venture. Photo by Samsung SDI
The newly confirmed Samsung SDI-GM joint venture will produce high-performance high-nickel prismatic batteries based on NCA (Nickel-Cobalt-Aluminum), which will be installed in future GM electric vehicles. Samsung SDI’s prismatic batteries not only improve driving range through high energy density but also excel in safety by featuring a metal exterior and safety devices (Vent). Through the joint venture with GM, Samsung SDI plans to expand its market share in the North American electric vehicle market and increase the number of customers adopting prismatic batteries with the highest quality and safety.
This definitive agreement was made based on both companies’ confidence in the growth potential of the electric vehicle market. The executives of both companies closely monitor the rapidly changing market conditions and have confirmed their investment in this joint venture. They plan to continuously expand strategic cooperation going forward.
Choi Yoon-ho, CEO of Samsung SDI, said, "Based on the strong partnership established since signing the MOU last year with GM, the number one automaker in the North American region, we have secured a premium battery production base to lead the U.S. electric vehicle market. We will do our best to strengthen GM’s leadership in the electric vehicle market with our PRiMX battery products, which embody Samsung SDI’s unmatched technological edge."
Mary Barra, Chairwoman of GM, stated, "The joint venture with Samsung SDI demonstrates GM’s firm commitment to leading innovation in the U.S. electric vehicle market. As more customers experience GM’s electric vehicles and expanding charging infrastructure, and as we expand into more diverse markets, the electric vehicle market and GM’s electric vehicle sales will continue to grow."
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