according to sources familiar with the matter.
This development comes after it was reported in January that GM and LG Energy Solution had decided not to proceed with the construction of a fourth U.S. battery plant. Currently, GM and LG Energy are collaborating on a $2.6 billion facility in Michigan, scheduled to commence operations in 2024, as one of three Ultium Cells LLC joint venture plants.
While the specific location of the new GM-Samsung SDI plant has not been disclosed yet, sources suggest that it will likely have a higher cost compared to the Michigan battery plant. GM and Samsung SDI have refrained from commenting on this matter.
In August, GM and LG Energy’s joint venture indicated that it was considering a site in New Carlisle, Indiana, for a fourth U.S. battery plant. The possibility of selecting the Indiana site for the new battery plant remains open.
GM previously stated its intention to produce 400,000 electric vehicles (EVs) in North America from 2022 through mid-2024 and to increase production capacity to 1 million units annually in North America by 2025. To meet the expected demand for EVs in the future, GM is reportedly contemplating the necessity of constructing at least two additional EV plants.
South Korean media had initially reported the potential collaboration between GM and Samsung SDI in early March.
In May 2022, Stellantis NV and Samsung SDI disclosed their plans to invest over $2.5 billion in establishing a joint venture battery plant in Kokomo, Indiana. Additionally, Stellantis and LG Energy had announced a $4.1 billion investment for a joint venture battery plant in Canada in 2022.
During a visit to Samsung in South Korea in 2022, U.S. President Joe Biden encouraged companies to engage in partnerships with American union members and emphasized the importance of collective bargaining relationships with U.S. unions for joint ventures involved in manufacturing electric vehicle batteries.
This week, President Biden is set to host South Korean President Yoon Suk Yeol for a summit meeting.
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