General Motors and Samsung SDI Plan to Invest More than $3 Billion to Expand U.S. Battery Cell Manufacturing

Rhea-AI Summary

General Motors (NYSE: GM) and Samsung SDI announced a joint investment exceeding $3 billion to establish a battery cell manufacturing facility in the United States, expected to commence operations by 2026. This partnership aims to enhance GM's supply chain for electric vehicles (EVs) by increasing battery cell capacity to approximately 160 GWh upon full production.

GM's CEO, Mary Barra, emphasized that this initiative aligns with the company's goals of scalability, sustainability, and cost-competitiveness. The facility is projected to produce over 30 GWh of battery cells annually, contributing significantly to meeting the rising demand for EVs. Employment opportunities in construction and operations are expected to reach into the thousands, bolstering economic growth in the region.

Positive

• Joint investment of over $3 billion with Samsung SDI to boost battery cell production.
• Projected battery cell capacity of more than 30 GWh, increasing GM's U.S. capacity to approximately 160 GWh.
• Creation of thousands of jobs in construction and operations.

Negative

• None.

DETROIT and SEOUL, South Korea, April 25, 2023 /PRNewswire/ -- General Motors Co. (NYSE: GM) and Samsung SDI announced today they plan to invest more than $3 billion to build a new battery cell manufacturing plant in the United States that is targeted to begin operations in 2026.

"GM's supply chain strategy for EVs is focused on scalability, resiliency, sustainability and cost-competitiveness. Our new relationship with Samsung SDI will help us achieve all these objectives," said GM Chair and CEO Mary Barra. "The cells we will build together will help us scale our EV capacity in North America well beyond 1 million units annually."

"It is a great pleasure to take the very first step to create a long-term industry-leading partnership with GM in the U.S. EV market," remarked Samsung SDI President and CEO Yoon-ho Choi. "We will do our best to provide the products featuring the highest levels of safety and quality produced with our unrivalled technologies to help GM strengthen its leadership in the EV market."

The plant will have more than 30 GWh of capacity and will bring GM's total U.S. battery cell capacity to about 160 GWh when it is at full production.

The companies plan to jointly operate the facility, and it is projected to have production lines to build nickel-rich prismatic and cylindrical cells.

According to Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain, the new joint venture with Samsung SDI will leverage the capital and technology of both companies to create new competitive advantages for GM.

"We will continue to scale production and optimize the chemistry of our pouch cells for performance, range and cost using new approaches pioneered at GM's Wallace Battery Center and by our technology partners," he said. "The introduction of new cell form factors will allow us to expand into even more segments more quickly and integrate cells directly into battery packs to reduce weight, complexity and costs. With multiple strong cell partners, we can scale our EV business faster than we could going it alone."

The Ultium Platform was strategically designed to accept multiple cell form factors and chemistries. For example, in China, the Cadillac LYRIQ is powered by prismatic cells applied to the same battery packs used in the U.S.

GM and Samsung SDI are not announcing the location of the plant or employment projections at this time, however, the number of new jobs in construction and operations are expected to number in the thousands.  As customer demand for EVs rises, GM will continue to scale its supply chain and operations, including cell production and vehicle assembly.

General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com. 

Samsung SDI, headquartered in the Republic of Korea, is a world-leading battery and electronic material manufacturer redefining the worlds of electric vehicles, energy storage systems and IT devices. The company drives transformation and innovation to emerge as a 'Creative Energy and Materials Solution Leader' across the fields of e-mobility, energy solutions, as well as semiconductors and displays. The company commits to sourcing 100% renewable electricity across its entire global operations by 2050. For the latest news, please visit the Samsung SDI News at https://www.samsungsdi.com/sdi-news/list.html.

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SOURCE General Motors Co.

FAQ

What is the investment amount for GM and Samsung SDI's partnership?

GM and Samsung SDI plan to invest over $3 billion for a battery plant in the U.S.

When is the new battery cell manufacturing plant expected to start operations?

The plant is targeted to begin operations in 2026.

What will be the capacity of the new battery plant?

The facility is expected to have a capacity of more than 30 GWh.

How will this partnership impact GM's battery production capacity?

It will increase GM's total U.S. battery cell capacity to about 160 GWh when fully operational.

What is the significance of the partnership for General Motors?

The partnership aims to enhance GM's supply chain and strengthen its position in the EV market.