General Motors Co. in Detroit has sold its 49.99 percent stake in the SynergyCells electric vehicle battery joint venture with Samsung SDI in New Castle, Ind., and signed a new agreement with the South Korean company to jointly develop a next-generation prismatic battery cell for potential future EV applications.
Financial details of the transaction were not disclosed.
The ownership change was made in consideration of market changes since the joint venture was announced — including the slower-than-expected growth of EV demand, according to the companies. The two partners say they have decided to seek other forms of cooperation other than the joint venture.
Under the new agreement, the two companies will co-develop prismatic batteries, featuring high energy density and fast charging capability. The new agreement extends the partnership between Samsung SDI and GM on their commitment to an electrified future.
By acquiring GM’s joint venture stake, Samsung SDI says it’s establishing its first independently operated battery production base in North America, with plans to utilize the plant for producing high-tech batteries for use in various 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 battery plant in Indiana is currently under construction. Once completed, Samsung SDI says it plans to start off by utilizing the plant for production of batteries for energy storage systems (ESS) in a move responding to the rapidly growing ESS market in the U.S.
In the future, the plant potentially could include prismatic cells jointly developed with GM.
