General Motors and Samsung SDI have announced they are partnering to build a new $3 billion battery cell factory in the U.S. to power GM electric vehicles.
The official announcement by GM and Samsung showcases the plan to invest more than $3 billion to build a new battery plant, which is anticipated to be operational in 2026.
In efforts to support its transition to electrification, for the last few years, GM has heavily invested in battery manufacturing in the U.S. It’s important to note that GM typically partners with LG Energy for its battery cell supply. The companies’ partnership has already resulted in three battery factories located in Ohio, Tennessee, and Michigan.
Furthermore, the partnership has considered building production lines for “nickel-rich prismatic and cylindrical cells.” The automaker claimed the new factory would have more than 30 gigawatt-hours (GWH) capacity. The result is GM’s total capacity increasing to roughly 160 GWH.
According to Doug Parks, executive vice president of GM’s global product development, purchasing, and supply chain, “Introducing 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 if we were to go at it alone.”
On the other hand, the announcement coincides with a visit to the U.S. by South Korean President Yoon Suk Yeol for the first time in 12 years. The two countries are marking the 70th anniversary of their alliance with a summit featuring announcements on new nuclear deterrence efforts, cyber security, and other areas of cooperation.
