a declaration made on Wednesday. The battery factory will start operating in 2027 with an annual production capacity of 27 GWh. Also, Samsung SDI and General Motors plan to grow the capacity to 36 GWh with additional expansion.
Shares of Samsung SDI rose 3.2% in morning trade, and the benchmark KOSPI fell 0.3%. In April 2023, they announced the plan. GM and Samsung SDI said the joint risk would cost over $3 billion. The battery factory will have a 30 GWh capacity, and they will start in 2026.
Electric vehicles will have batteries produced with nickel, cobalt, and aluminum. Samsung SDI batteries have key upsides. They have a better travel range and safety, with a metal exterior and venting system.
Kurt Kelty, the GM vice president of battery cell, said he had bonded with the Samsung SDI CEO to finish the battery joint risk. The vice president of General Motors said the plant will have the `capability to expand up to 36 GWh, building prismatic cells, which will be added to our battery technology portfolio, helping us to continue to increase performance and lower costs in the future.`
Samsung SDI and General Motors expect the EV battery factory to boost the regional economy, creating 1,600 jobs. Samsung SDI should invest about 2.29 trillion won between October 2024 and March 2028, according to the latest agreements. In this case, the company will secure a 5.01% stake in the joint risk for the EV batteries.
`Building on last year's partnership with GM, we have established a premium battery production hub to lead the U.S. EV market,` declared Samsung CEO Choi Yoon-ho. `Samsung SDI will make best efforts to support GM enhance its leadership in the EV market with the firm's PRiMX battery products.`
The battery factory for electric vehicles will be located in New Carlisle, Indiana. Also, the CEO and the General Motors chair, Mary Barra spoke about this partnership, `The Samsung SDI joint venture is the latest example of GM's commitment to driving innovation in America,` she said. `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.`
This partnership will help Samsung SDI strengthen their position in the North American EV market. `The agreement is rooted in a shared commitment to the growth of the EV market.` Last year, GM expected the Indiana plant to build both nickel-rich prismatic and cylindrical cells.
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