GM Walks Away From $3.5B Battery Factory, Leaving Samsung SDI in Full Control
The deal would have given GM a 50-50 ownership stake in the Indiana joint venture with Samsung SDI.
GM has sold its stake in a jointly planned battery factory in Indiana to Samsung SDI, walking away from the joint venture that would have given the automaker 50 percent ownership of the facility.
What Happened
The deal would have seen GM and Samsung SDI co-own the $3.5 billion plant in Kokomo, Indiana. Under the original agreement announced in 2022, each company was to hold a 50 percent stake in the venture, with production targeted for the Ultium battery platform that powers GM's electric vehicles including the Chevrolet Blazer EV and Cadillac Lyriq.
Why It Matters
The dissolution of the joint venture leaves Samsung SDI as the sole operator of the Indiana facility. For GM, it marks a shift away from co-investing in manufacturing capacity toward purchasing batteries directly from suppliers. The move aligns with similar strategies by other automakers who have scaled back or canceled planned battery plants amid slower-than-anticipated EV adoption and pressure to cut costs.
The Bottom Line
Samsung SDI will now operate the Indiana plant independently, potentially supplying batteries to multiple customers including GM under separate supply agreements. Financial terms of the stake sale were not disclosed.
