General Motors (NYSE: GM) and Samsung SDI have announced plans to construct a new EV battery cell plant in New Carlisle, Indiana, with operations set to begin in 2026.
Back in April, the companies revealed intentions to invest $3 billion in a US-based joint venture for an EV battery manufacturing plant but did not specify a location at that time. Previously, GM had decided against proceeding with a fourth battery plant in Indiana with LG Energy Solution; however, the company left open the possibility of building such a facility in the state— but with a different partner.
The joint venture between GM and Samsung SDI is projected to have an annual production capacity of 30 gigawatt-hours and will focus on producing high-nickel prismatic and cylindrical battery cells. Once construction is completed, the plant is expected to create about 1,700 jobs. Yoonho Choi, the CEO of Samsung SDI, emphasized in a statement that the partnership aimed to provide the highest quality products to facilitate America’s transition towards electric vehicles.
Last year, the US Energy Department approved a $2.5 billion loan to another joint venture of General Motors and LG Energy, Ultium Cells LLC. Together, they are building a $2.6 billion plant in Michigan that is due to commence operations in 2024. The two companies also have a plant in Ohio and another under construction in Tennessee.
By mid-2024, GM aims to produce 400,000 EVs in North America, with a view to boost this capacity to 1 million units per year by 2025. In light of rising demand for EVs, Reuters reported in April that GM is contemplating the construction of at least two more EV plants in addition to its announced four.
However, the labor conditions at these facilities have not gone without scrutiny. United Auto Workers (UAW) President Shawn Fain and US Senator Bernie Sanders criticized the GM-LG Ohio venture in April for paying workers less than their counterparts at assembly plants, despite receiving generous tax credits from the Biden administration.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.