Samsung SDI and General Motors (GM) have confirmed the establishment of a joint venture for the production of electric vehicle batteries in the U.S.
On the 28th, Samsung SDI announced that it signed a formal contract to establish a joint venture with GM to produce electric vehicle batteries in the U.S. The signing ceremony was attended by key executives from both companies, including Choi Yun-ho, CEO of Samsung SDI, at the Samsung headquarters in Seocho, Seoul.
The two companies had previously signed a memorandum of understanding (MOU) in March of last year to establish the electric vehicle battery joint venture and have been discussing detailed plans such as site selection. According to the finalized plan, Samsung SDI and GM will invest approximately $3.5 billion to establish a plant with an initial production capacity of 27GWh, aiming for mass production by 2027. The production capacity is expected to expand to 36GWh in the future.
The location of the joint venture has been confirmed as New Carlisle, Indiana, covering an area of 2.77 million square meters (approximately 840,000 pyeong). The establishment of the joint venture is expected to contribute to local economic revitalization by creating more than 1,600 jobs.
The Samsung SDI-GM joint venture will produce high-performance nickel-cobalt-aluminum (NCA) prismatic batteries, which will be used in GM’s upcoming electric vehicles. Samsung SDI’s prismatic batteries not only enhance driving range through high energy density but also feature a metal exterior and safety devices (vent) for improved safety. With the joint venture with GM, Samsung SDI plans to leverage its innovative technology to increase its market share in the North American electric vehicle segment and expand its customer base for high-quality and safe prismatic batteries.
The signing of this formal contract was based on both companies’ confidence in the growth potential of the electric vehicle market. Executives from both companies are closely monitoring the rapidly changing market conditions and have solidified their investment in this joint venture. They plan to continue expanding their strategic cooperation in the future.
Choi Yun-ho, CEO of Samsung SDI, stated, “Building a premium battery production base to lead the U.S. electric vehicle market has become possible following the strong partnership established after last year’s MOU with GM, the number one automaker in North America. We will do our utmost to help GM enhance its leadership in the electric vehicle market with Samsung SDI’s super-gap technology embodied in our PRiMX battery products.”
Mary Barra, Chairman of GM, commented, “The joint venture with Samsung SDI demonstrates GM’s firm commitment to lead innovation in the U.S. electric vehicle market. As more customers experience GM’s electric vehicles and expanding charging infrastructure, if we expand our reach into more diverse markets, the electric vehicle market and GM’s electric vehicle sales will continue to grow.”
Lee Sang-jin daedusj@autodiary.kr