Korean manufacturer Samsung SDI announced that it acquired General Motors’ stake in the SynergyCells joint venture. The collaboration had planned to build a $3.5 billion electric vehicle battery cell factory in New Carlisle, Indiana, with the American automaker holding a 49.99% stake.
Samsung SDI attributed the decision to market changes since the joint venture’s conception in 2023, including “slower-than-expected growth of EV demand.” The company said it plans to continue building the facility, which would serve as its first independently operated battery production base in North America.
The plant is currently under construction, though Samsung SDI did not provide an expected completion date. Once finished, the company now plans to make batteries for energy storage systems.
Despite GM’s exit from the joint venture, the two companies signed a new agreement to develop a prismatic battery cell for potential future EV applications, with Samsung SDI noting that the Indiana plant could eventually make the cells.
General Motors and Samsung SDI formed their original partnership in April 2023 and selected New Carlisle as the plant site two months later. The joint venture intended to make nickel-rich prismatic and cylindrical cells, achieve a capacity of 30 gigawatt-hours, create 1,600 jobs and begin production in 2026. However, in August 2024, the companies delayed the production start to 2027 after construction had begun.
GM’s decision to sell its stake follows a January 8 SEC filing in which the automaker said it expected to record approximately $6 billion in charges in the fourth quarter of 2025 following its review of EV capacity and investments. The announcement comes as automakers scale back EV plans after the loss of a $7,500 EV federal tax credit last September.
