Samsung Electronics and GM's battery division have sealed a $3.5 billion partnership on battery production.
In a recent Q2 earnings call, CEO Mary Barra expressed confidence in General Motors' (GM) position within the electric vehicle (EV) market. Barra highlighted continued consumer demand and an expanding portfolio as reasons for her optimism.
One of the key factors contributing to GM's EV growth is the Ultium Cells joint venture between GM and LG Energy Solution. This partnership is ramping up, helping GM drive down its average cell cost by $30 per kilowatt hour. The Ultium EV platform, designed to accept multiple cell form factors and chemistries, is expected to contribute to the expansion of GM's EV portfolio.
The portfolio expansion includes the 2025 Chevrolet Equinox EV and the upcoming next-generation Chevy Bolt. However, GM is opting to stay flexible before publicizing a new 2025 target.
GM and Samsung SDI finalized a joint venture for their $3.5 billion electric vehicle battery manufacturing plant. The factory, located in New Carlisle, Indiana, will initially have an annual production capacity of 27 gigawatt hours, with potential expansion up to 36 GWh. Initially, the factory was anticipated to begin production in 2026, but it has been pushed back to 2027.
The factory's batteries will be deployed in upcoming GM EVs, adding to GM's total U.S. battery cell capacity, which, once the Samsung SDI joint venture is at full production, is projected to be roughly 160 GWh.
The decision to finalize the joint venture was made amid automakers reassessing their positions in the EV market. GM and Samsung SDI have been closely monitoring the rapidly changing market conditions and remain committed to the market's growth.
CEO Mary Barra, who is at the helm of General Motors Co., has expressed her confidence in the company's EV designs, praising their beauty, the right range, and the right performance.
In light of these developments, GM is set to continue its stride in the EV market, with a focus on innovation, sustainability, and customer satisfaction.
