General Motors (GM) shares are trading slightly lower premarket Wednesday, following the finalization of a joint venture with Samsung SDI Co. to build an electric vehicle (EV) battery manufacturing plant in the United States. This strategic partnership marks a significant step forward for both companies in the rapidly growing EV market.
The joint venture involves a substantial investment of $3.5 billion, with the new plant located on a 680-acre site in New Carlisle, Indiana. The facility is expected to create over 1,600 jobs, boosting the local economy. The plant will initially have an annual production capacity of 27 GWh, targeting mass production by 2027, with plans to expand to 36 GWh in the future.
This joint venture will allow Samsung SDI to establish a strong presence in the North American EV market, expanding its customer base for its high-quality, safe batteries. The plant will produce NCA-based high-performance nickel-rich prismatic batteries, specifically designed for GM’s upcoming electric vehicle models.
Samsung SDI CEO Yoon-ho Choi expressed enthusiasm about the partnership, stating, “SAMSUNG SDI will make best efforts to support GM enhance its leadership in the EV market with the company’s PRiMX battery products featuring ‘Super Gap’ technology.” Mary Barra, GM Chair and CEO, echoed this sentiment, stating, “The EV market and GM sales will continue to grow as more customers experience our EVs, the charging infrastructure builds out and we expand into more segments.”
The partnership between Samsung SDI and GM was initially announced in April 2023, with an initial estimate of over $3 billion in investment. The companies initially stated that the plant would have more than 30 GWh of capacity and would begin operations in 2026. This collaboration is expected to play a vital role in accelerating the transition towards a more sustainable and electric future for the automotive industry.
Investors interested in gaining exposure to GM can consider the First Trust Nasdaq Transportation ETF (FTXR) and the Invesco S&P 500 Pure Value ETF (RPV).
