General Motors (GM) and Samsung SDI are set to form a joint venture (JV) and unveil plans to build an electric vehicle (EV) battery manufacturing plant in the US, according to Reuters.
The report comes amidst South Korean President Yoon Suk Yeol’s visit to Washington to meet with US President Joe Biden.
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An undisclosed Samsung SDI official told Reuters that: “[Samsung SDI] would likely have more than one battery JV plant with GM in North America.”
Similar to other automakers, GM is also attempting to catch up with Tesla by diversifying its battery supply chain and securing component capacity.
GM has already established a JV with LG Energy Solution in the US and is looking to boost cell production with Samsung SDI to benefit from the incentives under the US Inflation Reduction Act, which is intended to promote domestic production.
The US Energy Department approved a $2.5bn loan to the GM-LG Energy JV late last year.
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By GlobalDataBoth companies are constructing a $2.6bn facility in Michigan, one of three JV Ultium Cells units. The facility is scheduled to open next year.
The upcoming GM-Samsung SDI project is expected to cost higher than the Michigan battery plant, although no location has yet been announced.
Last year, GM stated that it intends to construct 400,000 EVs in North America between 2022 and mid-2024, rising to one million units per annum by 2025.
According to sources, GM is examining whether it will eventually require at least two additional EV plants to accommodate future demand.
