Samsung builds SDI and GM battery factory in Indiana, USA

South Korean battery manufacturer Samsung STI and American automobile company General Motors (GM) have signed an agreement to build a joint factory for electric car batteries in the United States. The new manufacturing plant is being built in the state of Indiana. The two companies are investing the equivalent of around 3.15 billion euros, and the factory is initially expected to have an annual production capacity of 27 gigawatt hours (GWh). Samsung STI announced this in an official statement, Reuters reported.

GM and Samsung SDI announced their plans for this joint venture in April 2023. Investment costs of more than 2.7 billion euros were talked about at the time, and the planned production capacity was around 30 GWh. The start of production was initially planned for 2026. Now Samsung STI has laid out its plans and said the new factory will begin mass production in 2027. During possible expansions, the capacity could even increase to 36 GWh per year.

Kurt Kelty, GM's vice president of battery cells and packages, was on site to coordinate details of the collaboration with Samsung SDI's CEO. Kelty emphasized that the new plant will produce up to 36 GWh – ensuring maximum capacity – and produce prismatic cells. These complement GM's existing battery portfolio and help increase battery performance and lower costs.

Last year, GM said its Indiana product line would include both nickel-rich prismatic and cylindrical battery cells. This is part of a strategy to diversify battery production and take advantage of technological innovation. This expansion of the portfolio of battery types is intended to help improve the performance and efficiency of electric cars.

Despite investing in a battery factory, GM cut its forecast for annual electric car production in June 2023. By 2024, the company expects to produce a maximum of 225,000 electric cars, down from the 270,000 units previously targeted. The forecast adjustment reflects a cautious stance as GM continues to rely on sales of its gasoline-powered models while gradually ramping up electric car production capacity.

Source: Reuters – Samsung SDI has finalized a deal with GM to build a $3.5 billion joint EV battery factory in the US