GM and Samsung SDI to build batteries in Indiana

The two companies will invest $3.5 billion to build a 27GWh battery cell manufacturing plant on a 275-hectare site in New Carlisle, Indiana. Output is planned to start in 2027. 

According to Samsung SDI the plant will produce prismatic lithium-ion batteries for GM’s EVs (see box).

Samsung SDI said the joint venture will give it a foothold in the North American EV market, though the battery maker is already in a joint venture with carmaker Stellantis called StarPlus Energy and is building a battery plant in Kokomo, also in Indiana, due to open next year. A second plant is planned there for 2027.

GM’s work on an EV supply chain also already has strong links. Earlier this year the carmaker signed a long-term contract with LG Chem worth 25 trillion Korean won ($18.7 billion) for the localised supply of more than 500,000 tons of cathode material in support of the carmaker’s EV production in the US. The supply contract will run between 2026 and 2035, with enough cathode material supplied over that time to power 5m EVs. 

Last year GM also signed a definitive agreement with Australian battery material supplier Element 25 to support the production of more than 1m EVs annually in North America. The carmaker also has a cobalt supply agreement with Glencore, also based in Australia.

Gradual approach
In response to reports that it is changing its plans for EV production, GM told Automotive Logistics that it had never set a sales target for 1m EVs by 2025 but rather forecast it would have the capacity to produce that number by the end of that year. “We’re actually going to ramp to that capacity more gradually,” said a spokesperson for GM. “For example, we have retimed the reopening of our Orion Assembly plant as an EV truck plant to mid 2026.”

That approach is being shared by other carmakers in North America and beyond. This week Toyota said it was moving forward with preparations to produce BEVs and other electric vehicles, including securing batteries, based on 1.5m units in 2026 and 3.5m units in 2030. However, it added that the number of EVs cited is not a target but a standard for stakeholders and a guideline for building a better system to meet future demand for battery EVs. The carmaker said putting customer needs first was important and it needed to “introduce the options they seek in a timely manner”.

GM’s spokesperson cautioned against projecting the existing EV market into 2027 when the GM Samsung SDI cell plant is expected to open. “EV choice and affordability is improving, charging is improving,” he said. “Third-party forecasters expect the market to set a record this year and continue to grow.”