Samsung SDI Ends GM JV, Takes Full Ownership of New Carlisle Battery Plant

Samsung SDI Takes Full Ownership of New Carlisle Battery Project

On August 11, Samsung SDI said it will end its joint venture agreement with General Motors in New Carlisle, Indiana, and acquire the automaker’s 49.99% stake. The decision reflects weaker-than-expected electric vehicle demand and changes the ownership structure of the planned battery operation. Samsung SDI said the wholly owned unit, SDI-GM Synergy Cells Holdings, will be used to produce batteries for multiple applications, including energy storage systems and electric vehicles. The move gives Samsung SDI full control of the facility while preserving its ability to pursue battery production across different end markets as demand conditions evolve.

EV Demand Weakness Changes Plant Investment Plans

The decision follows a shift in the project’s outlook after General Motors said in May that it was pausing completion of the USD 3.5 billion plant because of fewer electric vehicle sales. The New Carlisle project was announced in 2024 as a joint venture between Samsung SDI and General Motors, with planned annual production capacity of 27 GWh and an initial target to begin mass production in 2027. Samsung SDI said its existing investment plan will change after the transition to a wholly owned unit, although detailed investment plans had not yet been finalized. The revised ownership structure therefore leaves the future scale and timing of investment subject to further decisions.

Samsung SDI and General Motors Reshape Cooperation

Samsung SDI said the ownership change was made in consideration of market changes that have occurred since the joint venture was announced. The company also said the two partners have decided to pursue other forms of cooperation rather than continue the joint venture structure. This means the ownership change does not represent a complete end to collaboration between the companies. Instead, the battery partnership is being reshaped around a different operating model while both sides assess market conditions and future opportunities in electric vehicle and energy storage applications. The change reflects a more flexible approach to cooperation as demand expectations evolve.

Next-Generation Prismatic Battery Development Continues

Separately, Samsung SDI said it has signed an agreement with General Motors to jointly develop next-generation prismatic batteries for future electric vehicle applications. The new development agreement maintains a technology-focused relationship between the two companies even as the New Carlisle battery project moves under Samsung SDI’s full ownership. Prismatic battery development could therefore become a separate area of cooperation as the companies respond to changing EV demand and consider future battery technologies. The announcement highlights a broader shift from the original manufacturing joint venture toward more targeted cooperation while maintaining a development pathway for future electric vehicle battery applications.

Frequently Asked Questions

Why is Samsung SDI ending its joint venture with General Motors?
Samsung SDI is ending the joint venture because market conditions have changed since the project was announced, including weaker-than-expected electric vehicle demand. General Motors had already paused completion of the USD 3.5 billion New Carlisle battery plant in response to fewer EV sales. Samsung SDI will acquire General Motors’ 49.99% stake and operate the project through its wholly owned SDI-GM Synergy Cells Holdings unit. The company said investment plans will change, although specific future investment details have not yet been finalized.