General Motors (GM) and Samsung SDI will collaborate to launch an electric vehicle battery partnership in the US. The combined capital of the two businesses will be $3 billion (or around 4 trillion won), with an output of 30 GWh.
With the intention of beginning volume production in 2026, Samsung SDI stated on April 25 that it will create a battery partnership plant with GM. Over 350,000 electric vehicles’ batteries can be made each year with the 30 GWh capacity. The joint venture plant will create prismatic and cylindrical high-performance high-nickel batteries that will be used in GM’s next electric vehicles.
Beginning in 2025, Samsung SDI and Stellantis will operate a joint venture in Indiana, United States, with a 23 GWh capacity. As a result, our collaboration with GM will increase Samsung SDI’s capacity for supply in North America. As a result, Samsung SDI now has four major corporations as clients in addition to Volvo, BMW, Volkswagen, and Audi (commercial vehicles).
The number of GM models that qualify for Inflation Reduction Act (IRA) incentives is anticipated to rise. Four of the 22 electric vehicles that qualify for the IRA incentives revealed by the U.S. Treasury Department now include batteries from Samsung SDI. These include the Ford Escape, Lincoln Corsair, and the Jeep Grand Cherokee and Wrangler.
In order to dominate the electric car market, Samsung SDI and GM have begun a long-term strategic partnership, according to Samsung SDI president Choi Yoon-ho. According to GM Chairwoman Mary Barra, “Together, we will produce cells that power over one million electric vehicles yearly in North America.”
It is interesting that Samsung SDI chose to invest thus much money despite the current high interest rate. It is enhancing Samsung SDI’s reputation, which has come under fire for underinvesting in new facilities as opposed to LG Energy Solutions and SK energy.
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