General Motors (GM) and South Korea’s Samsung SDI have announced a new joint venture to build a $3bn electric vehicle (EV) battery cell plant in the US.
The plant is set to initiate operations in 2026, producing nickel-rich prismatic and cylindrical cells. However, the specific location has not been disclosed.
GM has pledged to sell only electric vehicles by 2030. The new plant will have more than 30 gigawatt hours (GWh) of capacity. That’s increasing GM’s total US battery cell capacity to about 160 GWh at full production.
Samsung won partnership for the fourth plant after some Chevrolet Bolt batteries made by LG faced safety issues. That forced GM to recall about 142,000 vehicles. The recall incurred a cost of about $1.9 billion for GM. The automaker actively stated that LG reimbursed them for the expenses.
Yoon-ho Choi, President, Samsung SDI, commented:
“We will do our best to provide the products featuring the highest level of safety and quality produced with our unrivaled technologies to help GM strengthen its leadership in the EV market.”
The new move aligns with the US Inflation Reduction Act. Manufacturers must assemble EVs in North America to actively qualify for a $7,500 federal EV tax credit. Additionally, a specified percentage of their battery parts and minerals must originate from North America or a US free trade partner.
The battery plant will actively contribute to the growth of the US economy, generating thousands of jobs. Union officials emphasize the need to organize these battery plants. They will actively facilitate the transition for workers currently engaged in manufacturing internal combustion engine (ICE) vehicles. This move aligns with the broader goal of providing continued employment opportunities within the industry.
Shifting their focus to emobility, GM anticipates the new plant to play a pivotal role in actively driving the achievement of their EV production goals.
