Samsung SDI will take full ownership of a battery manufacturing plant in Indiana as it restructures its partnership with General Motors, while continuing joint development of next-generation batteries for electric vehicles.
Samsung SDI said Wednesday that it had signed an agreement with GM to jointly develop next-generation prismatic batteries featuring high energy density and fast-charging capabilities. The batteries are expected to be used in GM’s future electric vehicle models.
At the same time, Samsung SDI will acquire GM’s entire 49.99% stake in Synergy Cells, a joint venture established by the two companies in 2024. The companies invested a combined $3.5 billion to build the facility in New Carlisle, Indiana, which is designed to have an annual production capacity of 27 gigawatt-hours.
Once the transaction is completed, the plant will become Samsung SDI’s first wholly owned battery manufacturing facility in North America.
Samsung SDI plans to use the plant to produce a range of batteries, including the next-generation prismatic cells being developed with GM. It also plans to establish production lines for energy storage system (ESS) batteries, allowing the facility to serve both the EV and energy storage markets.
The restructuring comes as automakers adjust their electric vehicle investment strategies amid slower-than-expected EV demand in North America. By operating the Indiana facility independently, Samsung SDI will have greater flexibility to adjust production and respond to demand for both EV and ESS batteries.
Despite GM’s exit from the joint venture, the two companies will maintain a strategic relationship through battery technology development. The agreement is aimed at securing advanced battery technologies for GM’s future EV lineup while allowing Samsung SDI to strengthen its presence in the U.S. market.
Samsung SDI has recently expanded its focus on the U.S. ESS market through battery supply agreements with American energy companies. The Indiana plant is expected to become an important production base for this strategy.
“By responding to market changes, we have decided to continue our strategic partnership with GM,” a Samsung SDI official said. “We will actively respond to growing demand for ESS batteries in the U.S. while jointly developing next-generation EV batteries with GM.”
