Courtesy of Samsung SDI

According to Pulse by Maeil Business News Korea,

Samsung SDI Co. has confirmed its plans to establish an electric vehicle (EV) battery manufacturing plant in the United States in partnership with General Motors Co. (GM). The company is seemingly unfazed by the current temporary slowdown in EV demand and remains optimistic about the market‘s long-term growth.

The company announced Wednesday that the duo signed a main contract for the joint venture in Seoul on Tuesday, with Key executives, including Samsung SDI CEO Choi Yoon-ho, in attendance. The contract follows an initial memorandum of understanding (MOU) signed in March 2023, with the two companies working out the details since then.

The joint venture will involve an investment of approximately $3.5 billion to build a factory with an initial annual production capacity of 27 gigawatt-hours by 2027, enough to power approximately 350,000 EVs.

Samsung SDI plans to invest 2.29 trillion won ($1.7 billion) by March 2028 to acquire a 50.01 percent stake in the company. There is potential to expand production capacity to 36GWh, which could adjust the investment and timeline.

This collaboration marks Samsung SDI’s second joint venture in North America, following its partnership with Stellantis N.V.

The new plant will be located in New Carlisle, Indiana, on a 2.77 million-square-foot site. Samsung SDI expects the joint venture to create more than 1,600 jobs and contribute to the local economy.

The facility will produce high-performance Nickel, Cobalt, Aluminum (NCA) prismatic batteries for GM‘s upcoming electric vehicles. These prismatic batteries not only improve driving range due to their high energy density but also offer enhanced safety features, according to Samsung SDI.

Through this joint venture, Samsung SDI aims to increase its market share in the North American EV market and expand its customer base for prismatic batteries.

Samsung SDI CEO Choi Yoon-ho emphasized the company’s commitment to supporting GM‘s leadership in the EV market with the South Korean company’s cutting-edge PRiMX battery technology.

GM CEO Mary Barra hailed the joint venture as a clear demonstration of GM’s commitment to innovation as well as its confidence in the continued growth of the EV market and the company’s EV sales.



By Pulse

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Source: Pulse by Maeil Business News Korea (August 28, 2024)