Samsung SDI, GM to build JV plant for EV batteries in Indiana

South Korea's major secondary battery maker Samsung SDI Co. and General Motors (GM) of the US will set up a joint venture (JV) plant for electric vehicle (EV) batteries in New Carlisle, Indiana. 

Both companies on Tuesday in New Carlisle said they plan to build the facility in the city.

In March, the two sides announced plans to build the factory with annual capacity of over 30 gigawatt hours to churn out batteries for more than 350,000 EVs. Their planned investment is around $3 billion (3.8 trillion won) and operations are expected to begin from 2026.

They did not, however, disclose the specific location of the facility.

Through the plant, Samsung SDI will produce high-performance and high-nickel prismatic- and cylindrical-type batteries for exclusive supply to GM for EVs. Covering 2.65 million square meters, the facility's area will equal that of 390 soccer fields of international regulation size.

The company said the plant after completion is expected to create 1,700 jobs.

From 2025 in Kokomo, Indiana, Samsung SDI will start running a JV plant with the Amsterdam, Netherlands-based automaker Stellantis with annual capacity of 23 GWh. Thus the South Korean company joined hands with GM to expand supply to North America.

Samsung SDI supplies EV batteries to BMW, Volkswagen, Audi and Volvo (commercial vehicles).

GM can expect to have more of its EVs receive subsidies under the US Inflation Reduction Act. Among the carmaker's 22 models eligible for such benefits following an announcement in April by the US Department of the Treasury, Samsung SDI is supplying batteries for the Jeep Grand Cherokee and Wrangler, Ford Escape and Lincoln Corsair.

Write to Sungsu Bae at baebae@hankyung.com