Battery manufacturer Samsung SDI announced that it has agreed to acquire General Motors’ entire 49.99% stake in their SynergyCells electric vehicle (EV) battery joint venture project, with plans to shift the plant from an EV battery focus to address growing demand for broader energy storage systems.

The companies initially signed an agreement in August 2024 to establish the $3.5 billion battery manufacturing joint venture, establishing a plant in New Carlisle, Indiana, expected to have an initial production capacity of 27GWh up to 36GWh, and a production target of 2027. The facility was expected to produce NCA-based high-performance nickel-rich prismatic batteries for use in GM electric vehicles.

The companies said that the ownership change was made in consideration of market changes since the joint venture was announced, including the slower-than-expected growth of electric vehicle demand.

The acquisition will make the New Carlisle facility Samsung’s first wholly owned battery manufacturing plant in North America. Samsung said that it plans to utilize the plant for producing high-tech batteries for use in various applications, with an initial focus on producing batteries for energy storage systems (ESS), responding to rapidly growing demand in the U.S. ESS market. The plant could also potentially produce prismatic battery cells jointly developed with GM in the future, the companies added.

As part of the transaction, Samsung SDI and GM also signed a new agreement to jointly develop next-generation prismatic battery cells for potential future EV applications. The new batteries will be designed to provide high energy density and fast-charging capabilities.

Samsung said:

“While reflecting recent market changes, this acquisition decision is to continue the strategic partnership with GM. We will continue our commitment to an electrified future with the partner, while utilizing the plant to proactively respond to the fast-growing ESS market in the U.S.”