Samsung SDI, a battery manufacturer, has acquired General Motors’ 49.99% stake in their battery joint venture in Indiana, making it the sole owner of the facility under construction.
The two companies are ending their joint-venture structure for SynergyCells, citing weaker-than-expected EV demand. They will continue research and development collaboration on next-generation prismatic battery cells.
The plant, located in New Carlisle, Ind., is expected to give Samsung SDI greater control over capacity, scheduling, product mix and investment decisions, according to GlobalData.
“From Samsung SDI’s viewpoint, acquiring full ownership provides more control over capacity, scheduling, product mix and investment decisions,” said Madhuchhanda Palit, senior automotive analyst at GlobalData. “With ESS demand growing more robustly than EV battery demand in the U.S., the Indiana plant can be oriented toward prismatic cells for ESS in the near term, allowing Samsung SDI to pivot more responsively.”
The move comes as U.S. battery storage demand increases while EV uptake trails earlier forecasts. GlobalData said prismatic and ESS-oriented batteries are increasingly favoured, with competitors including CATL and LG Energy Solution expanding domestic capacity.
For GM, the U.S. automaker’s exit from the joint venture reduces its exposure to cell production risk while allowing it to continue accessing battery technology through a joint development agreement with Samsung SDI.
Palit said the arrangement allows GM to reduce fixed costs while maintaining collaboration on next-generation prismatic cells. However, she noted that GM could become more dependent on suppliers for battery volume and timing.
