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The latest in the field came from the South Korean battery manufacturer Samsung SDI, which announced that it finalized an agreement with the US automaker General Motors (GM) on Wednesday August 28.
Under the agreement, the companies are establishing an EV battery manufacturing joint venture in New Carlisle, Indiana that is expected to start production in 2027.
The approximately $3.5 billion investment will build a plant with an initial capacity of 27 gigawatt hours (GWh), which is expected to increase to 36 GWh following expansion plans.
The plant will produce NCA-based high-performance nickel-rich prismatic batteries, for GM’s upcoming electric vehicles, which improve driving range through high energy density and enhance safety with its llic exterior and venting system, according to Samsung SDI.
“This is part of onshoring efforts by the EV and battery supply chain. On-shoring is critical to the US EV supply chains as shorter supply chains help bring [the price of] EVs and Hybrids more in-line with ice vehicles,” Fastmarkets analyst Andrew Saucer said.
“It is also part of automakers’ and battery makers’ [efforts] to develop diverse supply chains with committed long term partnerships as this is neither party’s first battery joint venture in North America,” he added.
GM has previously formed a joint venture with another South Korean battery producer SK On to build four EV battery plants and Samsung has previously signed a similar deal with Stellantis to manufacture a facility in Kokomo, Indiana.
Samsung and Stellantis later announced a memorandum of understanding (MOU) to establish a second battery manufacturing facility in the country.
SK On has also entered JVs with other US-based auto-manufacturers, including with Hyundai to establish a battery cell production joint venture with Hyundai Motors in Georgia and with Ford to manufacture EV batteries in Tennessee and Kentucky.
The JV with Ford, BOSK, also received a “conditional commitment for a loan” from the US Department of Energy for three battery manufacturing plants for $9.2 billion, the biggest loan to date from the DOE for EV manufacturing.Consumer tax credits and support from the Federal government under the IRA has been incentivizing South Korean and Japanese battery makers to expand their supply chains in the US, according to Saucer.
“The US automotive market is one of the largest in the world and the government wants to maintain its automotive manufacturing capacity through the energy transition. Providing support under the IRA allows the US Government to incentivize experienced battery market participants to its supply chain,” he said.
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