G.M., Samsung SDI to announce U.S. EV battery factory plans. As the carmaker diversifies its component suppliers, General Motors Co (GM.N) and Samsung SDI (006400. K.S.) will unveil a joint venture electric vehicle battery production factory in the U.S. on Tuesday, sources said.
President Yoon Suk Yeol is visiting Washington for the first time in 12 years to meet President Joe Biden.
More than 100 executives from South Korea’s biggest companies, including Samsung Electronics (005930. K.S.) Executive Chairman Jay Y. Lee and Hyundai Motor Group Executive Chair Euisun Chung accompanied Yoon on his U.S. visit focused on business opportunities.
G.M. and Samsung SDI did not comment on the announcement date. However, last month, South Korean media disclosed GM-Samsung SDI JV intentions.
Samsung SDI indicated “would likely have more than one battery J.V. plant with G.M. in North America” without providing details. He refused to be identified since he could not speak to the media.
As it tries to catch Tesla Inc (TSLA.O), Detroit-based GM is diversifying its battery supply chain and securing component capacity.
G.M. has a U.S. joint venture (J.V.) with L.G. Energy Solution (373220. K.S.) to use subsidies under the U.S. Inflation Reduction Act to increase local manufacturing.
The U.S. Energy Department loaned GM-LG Energy J.V. $2.5 billion late last year. One of three JV Ultium Cells LLC operations, the $2.6 billion Michigan facility will operate in 2024.
In January, Reuters reported that G.M. might still choose a battery factory location in New Carlisle, Indiana.
The new GM-Samsung SDI project is estimated to cost more than the Michigan battery plant, but its location will not be revealed, sources said anonymously.
Last year, G.M. announced plans to construct 400,000 electric cars (E.V.s) in North America from 2022 to mid-2024 and 1 million in 2025. However, according to sources, G.M. may need two more E.V. factories to fulfill future demand.
During a visit to Samsung in South Korea last year, Biden advised firms to “enter into partnerships” with “American union members” and said J.V.s “that manufacture electric vehicle batteries would be made stronger by collective bargaining relationships” with U.S. unions.
On Tuesday, Hyundai Motor Group and SK On, a battery business of S.K. Innovation Co Ltd (096770. K.S.), announced a $4.86 billion battery J.V. in Georgia.
Last year, carmaker Stellantis NV and Samsung SDI announced a $2.5 billion J.V. battery project in Kokomo, Indiana.
Stellantis and L.G. Energy announced a $4.1 billion Canadian J.V. battery facility in 2022.
Samsung SDI fell 3% on Tuesday, compared to a 1.8% loss in the broader market (.KS11).
