South Korean electric vehicle (EV) battery manufacturer Samsung SDI and US automaker General Motors (GM) have jointly announced they have signed a final agreement to establish a new US3.5bn EV battery manufacturing joint venture in the US.

The two companies had signed a preliminary agreement last year, to set up a battery manufacturing joint venture in the US state of Indiana with an initial production capacity of over 30 GWh and employ more than 1,700 people.

According to the slightly scaled back final agreement, Samsung SDI and GM will jointly build a battery cell manufacturing plant on a 680-acre site in New Carlisle, Indiana, with an initial annual production capacity of 27GWh - enough to power some 350,000 EVs. Mass production is scheduled to start in 2027, with the plant expected to employ some 1,600 people.

Annual capacity is expected to be increased to 36GWh later on depending on market demand. Samsung SDI will have a 50.01% stake in the joint venture, with GM taking a 49.99% stake, according to reports.

Samsung SDI said the plant will produce NCA-based (nickel-cobalt-aluminium) high-performance nickel-rich prismatic batteries for use in upcoming GM EVs targeted mainly at the North American market. The company claims its prismatic batteries not only improve driving range through high energy density, but also enhance safety thanks to its “llic” exterior and venting system.

Samsung SDI’s CEO Yoon-ho Choi said at the ceremony: “Samsung SDI will make its best efforts to support GM to enhance its leadership in the EV market with our PRiMX battery products featuring 'Super Gap' technology.”

GM’s CEO Mary Barra said in a statement: “The Samsung SDI joint venture is the latest example of GM’s commitment to driving innovation in America. The EV market and GM sales will continue to grow as more customers experience our EVs, the charging infrastructure build outs and as we expand into more segments.”

GM already has a battery partnership with South Korea’s LG Energy Solution Ltd (LGES), called Ultium Cells LLC, which has two EV battery plants in operation in the US while construction of a third plant has been suspended due to weaker than expected EV demand in the region.

Samsung SDI has a battery manufacturing joint venture in the US with Stellantis, called StarPlus Energy, with two plants currently under construction also in the state of Indiana.

"GM finalises EV battery plant agreement with Samsung SDI" was originally created and published by Just Auto, a GlobalData owned brand.

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