GM, Samsung SDI ink deal for $3.5B EV battery plant in Indiana

South Korean battery maker Samsung SDI and American automaker General Motors (NYSE:GM) finalize an agreement to build a joint electric vehicle battery manufacturing facility in the U.S. state of Indiana.

The two companies will collectively invest about $3.5B to construct a new battery cell production plant with an initial annual capacity of 27 gigawatt hours ((GWh)). The facility aims to commence mass production by 2027 and potentially increase the annual capacity to 36 GWh.

The new plant will make nickel-rich prismatic batteries to be deployed in upcoming GM (GM) EVs. The joint venture will be located in New Carlisle, Indiana, on a 680-acre site and is expected to create more than 1,600 jobs.

The two companies first announced their plans in April 2023.

“Building on last year’s partnership with GM, the No. 1 automaker in North America, we have established a premium battery production hub to lead the U.S. EV market.” said Samsung SDI CEO Yoon-ho Choi.

The joint venture “is the latest example of GM’s commitment to driving innovation in America,” said GM (GM) Chair and CEO, Mary Barra. “The EV market and GM sales will continue to grow as more customers experience our EVs, the charging infrastructure builds out and we expand into more segments.”

Samsung Electronics (OTCPK:SSNLF) is the parent organization for Samsung SDI.

General Motors (GM) stock price was marginally lower, down 0.16% on the U.S. exchange on Wednesday during pre-market trade. Shares of Samsung SDI increased more than 3% on the South Korea’s exchange.