Samsung SDI and General Motors are set to invest $3.5 billion in a new battery plant in Indiana, even as global EV sales face a slowdown.
However, they’ve decided to reduce the plant’s production capacity, and the start of mass production has been delayed from the original schedule.
On Tuesday, Samsung SDI and General Motors finalized a legally binding agreement, cementing details such as investment size and production capacity for their planned battery plant in New Carlisle, Indiana. Initially, the plant will have a production capacity of 27 gigawatt-hours, enough to power 350,000 EVs. Samsung SDI expects the plant’s annual capacity to eventually rise to 36 gigawatt-hours.
amsung SDI and General Motors have finalized a legally binding agreement on Tuesday, solidifying the investment size and production capacity for their upcoming battery plant in New Carlisle, Indiana. This plant, initially agreed upon in March last year, will have an initial production capacity of 27 gigawatt-hours, which is enough to produce 350,000 electric vehicles (EVs). Eventually, the annual capacity is expected to increase to 36 gigawatt-hours, according to Samsung SDI.
Mass production at the new plant is now scheduled to begin in 2027, a delay from the originally planned 2026. The facility will produce high-nickel prismatic batteries for General Motors’ future EVs and is anticipated to create around 1,600 new jobs.
This Indiana plant will be Samsung SDI’s third battery manufacturing facility in the United States. The company is already constructing two battery plants in Kokomo, Indiana, in partnership with Stellantis. The first of these factories is set to start production in December, with the second expected to begin operations in early 2027.
“Building on last year’s partnership with GM, the leading automaker in North America, we have established a premium battery production hub to lead the U.S. EV market,” said Samsung SDI CEO Choi Yoon-ho. “Samsung SDI will make its best efforts to help GM strengthen its leadership in the EV market with our battery products featuring ‘Super Gap’ technology.”
Samsung SDI’s investment comes at a time when other Korean battery manufacturers have opted to suspend or delay the construction of joint battery plants due to declining EV demand. For example, Ultium Cells, a joint venture between LG Energy Solution and General Motors, announced a slowdown in the construction of its third plant in Michigan. LG Energy also paused the construction of its battery production line for energy storage systems in Arizona in June. Additionally, SK On postponed the start of operations at its second Kentucky plant, a joint venture with Ford Motor, which was initially slated for 2026.
Despite these industry trends, Samsung SDI remains committed to its investment plans. “Samsung SDI has no change in our investment plan,” said Kim Yoon-tae, vice president of the business management office at Samsung SDI, during a recent conference call. However, the company reported a lower-than-expected operating profit of 280.2 billion won ($210 million) for the second quarter, reflecting a 38 percent year-on-year decrease.