General Motors (NYSE: GM ) and Samsung SDI (OTC: SSDIY ) have completed and finalized an agreement to establish a joint venture (JV) to supply electric vehicle (EV) batteries in the United States .
The partnership includes a $3.5 billion investment to build a battery cell manufacturing plant with an initial production capacity of 27 GWh per year, targeting mass production by 2027. The company expects future expansions to increase capacity to 36 GWh.
This joint venture will help Samsung SDI solidify its position in the North American EV market and expand its customer base for high-quality, safe batteries.
The joint venture will be located on 680 acres in New Carlisle, Indiana, and is expected to create more than 1,600 jobs, revitalizing the local economy.
The new plant will produce NCA-based high-performance nickel-rich prismatic batteries for GM’s upcoming electric vehicles.
Samsung SDI President Choi Yoon-ho said, “Samsung SDI will do its best to help GM strengthen its leadership in the electric vehicle market through PRiMX battery products with ‘supergap’ technology.”
“As more customers experience our EVs, our charging infrastructure is built out and we expand into more segments, the EV market and GM sales will continue to grow,” said GM Chairman and CEO Mary Barra.
In April 2023, Samsung SDI and GM initially announced that the JV would cost more than $3 billion . The companies said the plant would have a production capacity of more than 30 GWh and is expected to begin operations in 2026.
Investors can get exposure to GM through the First Trust Nasdaq Transportation ETF (NASDAQ: FTXR ) and the Invesco S&P 500 Pure Value ETF (NYSE: RPV ).
Stock Price: GM shares closed Wednesday down 0.43% at $49.05.
Photo by Jonathan Weiss for Shutterstock
Disclaimer: This content was created in part with the help of AI tools and has been reviewed and published by Benzinga editors.
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