- Samsung SDI has acquired GM’s 49.99% stake in their $3.5 billion Indiana battery venture, giving the Korean battery maker full ownership of the facility.
- The plant will shift part of its focus toward stationary energy storage systems as U.S. demand rises, while retaining capacity for advanced battery applications.
- The deal follows similar EV battery venture restructurings by Ford, Stellantis and LG Energy Solution as automakers adjust to slower EV growth.
Samsung SDI is taking full control of a $3.5 billion battery plant originally planned with General Motors, as slower electric vehicle demand reshapes North America’s battery manufacturing sector.
The South Korean battery maker acquired GM’s entire 49.99% stake in the SynergyCells joint venture in New Carlisle, Indiana. Samsung SDI announced the transaction on August 11.
The acquisition will make the facility Samsung SDI’s first wholly owned battery factory in North America. The plant remains under construction.
Rather than relying solely on EV demand, Samsung SDI plans to use the facility for stationary energy storage system batteries. It will also manufacture high-tech batteries for other applications.
The strategy gives Samsung SDI greater exposure to the fast-growing U.S. energy storage market. Demand is being supported by renewable energy deployment, grid investment and electricity-intensive data centers.
$3.5 billion EV project adapts to weaker demand
Samsung SDI and GM announced the joint venture in 2023. The companies planned to invest about $3.5 billion and support approximately 1,600 jobs.
Production of high-performance, nickel-rich prismatic batteries was expected to begin in 2027.
Since then, weaker-than-anticipated EV demand has forced GM to revise its electrification strategy. Other major U.S. and international automakers have made similar adjustments.
GM’s withdrawal does not end its relationship with Samsung SDI. The companies have signed a separate agreement covering future battery development.
They will work on high-energy-density and fast-charging prismatic cells for potential EV applications.
“While reflecting recent market changes, this acquisition decision is to continue the strategic partnership with GM,” said a Samsung SDI official in a statement. “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.”
The arrangement allows GM to reduce its capital exposure while retaining access to battery technology development.
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Battery makers pivot toward energy storage
The Indiana transaction is part of a wider restructuring across North America’s battery sector.
Ford and SK On agreed last December to dissolve their BlueOval SK joint venture. The partnership was established in 2021 as part of a planned $11.4 billion investment in three U.S. battery plants.
Ford is now repurposing its Kentucky facility to manufacture 5-megawatt-hour energy storage batteries through its Ford Energy subsidiary. Large-scale batteries are seeing stronger demand as AI data centers increase electricity requirements.
Stellantis has also retreated from a battery partnership. In February, it agreed to sell its 49% stake in Canada’s NextStar Energy venture to LG Energy Solution for $100 million.
The transaction formed part of Stellantis’ broader $26 billion EV write-down and strategic reset.
LG Energy Solution plans to use the Windsor, Ontario facility for lithium iron phosphate energy storage batteries. The company is targeting more than 60 GWh of global ESS capacity in 2026. More than 50 GWh is expected to be located in North America.
LG Energy Solution has separately agreed to sell its stake in an Ohio battery plant to Honda Development and Manufacturing of America for $2.85 billion.
Energy storage offers a second market for battery capital
For executives and investors, these restructurings show how battery manufacturing strategies are adapting to changing demand rather than simply retreating from electrification.
Automakers are reducing exposure to expensive manufacturing ventures as EV adoption develops more slowly than earlier forecasts. Battery producers, meanwhile, are seeking alternative markets for factories and supply chains already under development.
Energy storage provides one of the clearest opportunities.
That shift could help preserve manufacturing capacity while supporting grid resilience, renewable integration and growing power demand from data centers.
Samsung SDI’s Indiana acquisition places that strategy inside a facility initially designed around the EV expansion. Its next phase reflects a broader change across North America: battery investment is increasingly serving both transportation and the power system.
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