South Korea's Samsung SDI to buy out GM's stake in battery joint venture
GM•Investment plans and future cooperation
The company said its existing investment plan would change following the shift to a wholly owned unit, but specific investment plans had not yet been finalised. The company said it would make further disclosures in accordance with regulatory requirements.
"The ownership change was made in consideration of market changes since the joint venture was announced – including the slower-than-expected growth of EV demand. The two partners have now decided to seek other forms of cooperation other than the joint venture," Samsung SDI said in a statement.
Separately, Samsung SDI said it has signed an agreement with GM to jointly develop next-generation prismatic batteries for potential future EV applications.
Samsung SDI ends Indiana joint venture with GM
South Korean battery maker Samsung SDI said on Tuesday it will end its joint venture agreement with General Motors in Indiana and acquire the U.S. firm's 49.99% stake, citing weaker-than-expected electric vehicle demand.
Samsung SDI said in a regulatory filing that it plans to use the wholly owned unit, SDI-GM Synergy Cells Holdings, to respond to market demand for batteries across various applications, including energy storage systems (ESS) and EVs.
Weak EV demand has slowed the plant's progress
Reuters had reported earlier this year that construction at the plant had slowed amid weak demand for EVs.
GM and other automakers pulled back on EV manufacturing following the loss of a $7,500 federal tax credit last September. While automakers continue to build and sell EVs, they have lowered factory output to match demand.
