Samsung SDI to co-develop next-gen prismatic batteries with GM, acquire partner's stake in joint venture

Samsung SDI will jointly develop next-generation electric vehicle batteries with General Motors, while acquiring GM's stake in their North American joint venture to secure the company's first sole-owned production base in the region and expand its presence in the ESS market.

Samsung SDI said Tuesday it has signed a joint development agreement with GM to co-develop next-generation prismatic batteries for electric vehicles.

Under the agreement, the two companies will conduct joint research and development on prismatic batteries incorporating Samsung SDI's high energy density and fast-charging technologies, deepening their strategic cooperation for the future mobility market. Prismatic batteries developed through the project are expected to be installed in GM's next-generation EV models.

Samsung SDI also said it will acquire GM's entire 49.99 percent stake in their joint venture, Synergy Cells, taking full ownership of the entity. Synergy Cells was established by the two companies in New Carlisle, Indiana, with a combined investment of $3.5 billion, and is designed to produce 27 gigawatt-hours of EV batteries annually. The factory is currently under construction.

Through the acquisition, Samsung SDI will gain its first sole-owned battery factory in North America. The facility is expected to mass-produce next-generation prismatic EV batteries co-developed with GM, as well as advanced battery products for a range of other applications.

Samsung SDI said the decision was made to respond flexibly to shifts in the North American battery market, and that the two companies have agreed to continue their partnership in a new phase of cooperation.

Samsung SDI also plans to build an ESS battery production line at the factory, positioning itself to capture growth in the rapidly expanding North American ESS market. The company has been broadening its foothold in the United States, signing a series of large-scale ESS battery supply contracts with major energy companies there since last year.

"This decision reflects changes in the market while allowing us to continue our strategic partnership with GM," a Samsung SDI official said. "We will sustain our joint efforts at this factory for the future EV era, while actively responding to US ESS demand."

Meanwhile, Samsung SDI is actively reviewing multiple strategies to further expand its production capacity in line with growing ESS orders in the United States. The company plans to begin mass production of lithium iron phosphate batteries for the US ESS market in October, with customer deliveries to start before year-end.

Cho Yong-hwi, Samsung SDI's executive vice president and head of the ESS business team, said at the company's second-quarter earnings call late last month that US ESS orders secured to date cover a substantial portion of its production capacity through 2029. "If we factor in projects with a high likelihood of being awarded in the second half, demand is expected to exceed our production capacity from 2028," he said. "We are currently reviewing options internally to secure additional capacity."