General Motors (GM) and Samsung SDI have revealed plans to construct a state-of-the-art electric vehicle (EV) battery cell plant in Indiana, with an estimated investment of over $3 billion. Indiana’s governor confirmed the news, stating that the plant is set to commence operations in 2026, generating approximately 1,700 job opportunities.
Earlier this year, in April, GM and Samsung SDI announced their intention to collaborate on a joint venture for EV battery manufacturing in the United States. However, they had not yet disclosed the specific location. It was reported by Reuters in January that GM had decided against proceeding with a separate battery plant project in Indiana, originally planned with LG Energy Solution. Nonetheless, GM indicated that Indiana remained a potential candidate for a battery plant in collaboration with another partner.
The joint plant between GM and Samsung SDI will be situated near New Carlisle, Indiana, and aims to achieve an annual production capacity of 30 gigawatt hours (GWh) of battery cells. The facility will focus on manufacturing high-nickel prismatic and cylindrical battery cells, emphasizing safety and quality in alignment with the U.S. transition towards electric vehicles.
Samsung SDI CEO Yoonho Choi expressed confidence in securing Indiana as a robust foundation for their operations alongside GM. He affirmed their commitment to providing products of exceptional safety and quality, thereby supporting the United States’ progress into the era of electric vehicles.
To facilitate the venture, the U.S. Energy Department finalized a $2.5 billion loan to the GM-LG Energy Ultium Cells LLC joint venture in late 2022. The companies are concurrently constructing a $2.6 billion plant in Michigan, scheduled to open in 2024, and are in the process of building another facility in Tennessee, having already opened a plant in Ohio.
GM has ambitious goals for electric vehicle production. They anticipate manufacturing 400,000 EVs in North America between 2022 and mid-2024, with plans to further escalate capacity to 1 million units annually in the region by 2025. Considering the projected demand for electric vehicles, GM is reportedly exploring the possibility of constructing at least two additional EV plants on top of the initial four.
Notably, the GM LG Ohio joint venture faced criticism in April from United Auto Workers President Shawn Fain and U.S. Senator Bernie Sanders. They expressed concerns regarding the wages of workers at the Ohio plant, which were lower compared to those of assembly plant employees, despite the company benefiting from significant U.S. government tax credits.
The United Auto Workers (UAW) has not yet endorsed President Joe Biden for a second term, citing reservations about EV policies. During a visit to Samsung in South Korea last year, President Biden encouraged companies to form partnerships with American union members, highlighting the potential strength that joint ventures manufacturing electric vehicle batteries could gain from collective bargaining relationships with U.S. unions.
In conclusion, the forthcoming GM and Samsung SDI EV battery cell plant in Indiana marks a significant step in the expansion of electric vehicle manufacturing in the United States. The sizable investment, along with the creation of numerous job opportunities, reflects the growing commitment of both companies to contribute to the advancement of electric mobility while fostering strong partnerships with local communities and union members.
