Samsung SDI has acquired General Motors’ (GM) 49.99% holding in their joint venture (JV), SynergyCells, giving the South Korean battery maker sole ownership of its first manufacturing facility in North America.
The plant, under construction in New Carlisle, Indiana, is being built under a JV arrangement reached in May 2023.
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The two companies are now unwinding the JV structure entirely, citing EV demand that has grown more slowly than initially forecast as the reason behind the decision.
GM and Samsung SDI said they plan to keep working together through “other” forms of partnership.
Building work on the facility remains ongoing.
Samsung SDI has indicated that when the plant comes online, it will initially focus on producing batteries for energy storage systems (ESS), citing growth in demand within the US ESS market.
Alongside the change in ownership, the two firms have signed a joint development agreement (JDA) focused on next-generation prismatic battery cells that could eventually be used in electric vehicles.
Under the terms outlined by the companies, prismatic cells developed through this partnership with GM may ultimately be produced at the same Indiana site.
The JDA centres on developing prismatic battery cells designed for high energy density and fast-charging performance.
Financial details of the stake acquisition, including its value, have not been made public.
“While reflecting recent market changes, this acquisition decision is to continue the strategic partnership with GM. We will continue our commitment to an electrified future with the partner, while utilising the plant to proactively respond to the fast-growing ESS market in the US”, a Samsung SDI official said.
The transaction comes after a separate deal announced by Samsung SDI in April, in which the company agreed to supply batteries for Mercedes-Benz’s forthcoming electric vehicle range – the first such arrangement between the two companies.
Separately, GM has completed a 20-year extension of its JV with China’s SAIC Motor, pushing the partnership’s timeline out to 2047.
SAIC-GM has been active in China since 1997, with combined production and deliveries surpassing 20 million vehicles over that period.
The venture built out full-scale vehicle development capabilities during its formative years.
