GM, Samsung plan new $3B EV battery cell factory in US
DETROIT — General Motors and South Korea’s Samsung SDI plan to invest more than $3 billion in a new electric vehicle battery cell plant in the United States, the companies said this week.
The site of the new factory, which was not disclosed, is expected to begin operations in 2026, GM and Samsung SDI said in a statement.
GM and Samsung SDI plan to operate the factory, which is expected to make nickel-rich prismatic and cylindrical cells. The companies said it was expected to create thousands of jobs.
The project is GM’s fourth joint venture battery cell factory. It has announced three others with South Korea’s LG Energy Solution. A 900-worker factory near Warren, Ohio, is starting to build cells, while plants in Spring Hill, Tennessee, and Lansing, Michigan, are in the works.
The announcement coincided with a visit to the U.S. by South Korean President Yoon Suk Yeol. The two countries marked the 70th anniversary of their alliance with a summit, which also featured an announcement Wednesday on a new nuclear deterrence plan against North Korea’s nuclear threat.
Samsung was picked as the partner for the fourth plant after some Chevrolet Bolt batteries made by LG caught fire, forcing GM to recall about 142,000 vehicles due to a battery manufacturing problem. The recall cost GM about $1.9 billion, and the automaker said it was reimbursed for the cost by LG.
“We will do our best to provide the products featuring the highest level of safety and quality produced with our unrivaled technologies to help GM strengthen its leadership in the EV market,” Samsung SDI President and CEO Yoon-ho Choi said in a statement.
The new factory will have more than 30 gigawatt hours of capacity and will increase GM’s total U.S. battery cell capacity to about 160 gigawatt hours when it is at full production, the companies said.
GM has pledged to sell only EVs by 2035. It has said that because of its huge investment in battery plants and a North American EV supply chain, six of its current or upcoming EVs are to be eligible for the full $7,500 U.S. federal EV tax credit. They are the Chevrolet Bolt and Bolt SUV, the Chevrolet Silverado electric pickup, the Cadillac Lyriq SUV and the upcoming Chevy Blazer and Equinox electric SUVs.
Under the U.S. Inflation Reduction Act, EVs must be assembled in North America, and a certain percentage of their battery parts and minerals have to come from North America or a U.S. free-trade partner to qualify for the full tax credit.
Workers at the Ohio battery plant have voted to join the United Auto Workers union, which is pushing to organize the other factories and get top wages for the workers. Union officials have said they must organize the battery plants so that workers making engines and transmissions have a place to go when jobs making internal combustion vehicles are phased out.
EVs have 30% to 40% fewer moving parts and require about 30% fewer labor hours to build them.