The logos of Samsung SDI and General MotorsSAMSUNG SDI
Samsung SDI announced on Tuesday that it is ending its battery plant venture with General Motors (GM) in Indiana with the acquisition of the Detroit-based automaker's entire stake, taking sole ownership of the plant.
The two companies are instead pivoting in a new direction with an agreement to jointly develop next-generation prismatic batteries for EVs.
Under the deal, GM will sell its 49.99 percent stake to Samsung SDI, though details such as the price were not disclosed.
The venture, SynergyCells, was established in 2024 in New Carlisle, Indiana, with a plan to invest $3.5 billion to build a battery plant with 27 gigawatt-hours of annual capacity. Mass production was slated to begin in the fall of 2027.
The Indiana plant will now become Samsung SDI's first wholly owned battery plant in North America, where it plans to mass-produce batteries along with a dedicated line for energy storage system (ESS) batteries.
"This decision reflects shifting market conditions while preserving our strategic partnership with GM," Samsung SDI said. "We will continue our joint efforts with GM toward the future of electric vehicles from this plant, while also responding proactively to growing ESS demand in the United States."
Samsung SDI's prismatic batteriesSAMSUNG SDI
The two companies will co-develop prismatic batteries incorporating high-energy-density and fast-charging technologies. The batteries are expected to be deployed in GM's future EVs.
The uncertainty comes as GM undertakes a sweeping reassessment of its EV capacity and manufacturing footprint, seeking to align its operations with softer-than-expected consumer demand on the back of rolled-back U.S. EV incentives.
The U.S. automaker recorded $7.6 billion in charges last year tied to production cutbacks across its EV and battery operations, including a substantial write-down in the fourth quarter.
Last year, GM sold its stake in a third plant operating under Ultium Cells, a joint venture with LG Energy Solution, to the Korean battery maker for $2.14 billion. That venture, formed in 2020, operates two plants in Ohio and Tennessee.
