SEOUL/WASHINGTON Reuters — South Korea’s Samsung SDI announced on Wednesday that it has finalized a deal with General Motors GM to build a joint electric vehicle EV battery factory in Indiana, USA.
The companies will invest around $3.5 billion in the project, which will initially have a production capacity of 27 gigawatt-hours GWh per year. Samsung SDI expects the plant to start mass production in 2027, with a potential to expand capacity to 36 GWh.
Shares of Samsung SDI rose by up to 3.2% following the announcement, while the KOSPI index fell by 0.3%.
The joint venture, first announced in April 2023, was initially set to cost over $3 billion with a planned production capacity of 30 GWh. GM’s Kurt Kelty noted that the plant will produce prismatic cells and contribute to advancing battery technology, improving performance, and reducing costs.
GM also stated that the Indiana facility will be capable of producing both nickel-rich prismatic and cylindrical cells. However, GM recently reduced its EV production forecast for 2024 to a maximum of 250,000 units, down from 300,000.
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