Samsung SDI advances with General Motors and Volvo to establish a joint venture battery factory in the United States

According to Korean media reports, Samsung SDI is promoting the establishment of a joint venture electric vehicle battery factory with two global automakers, General Motors and Volvo, in the United States. The total cost of the two joint venture projects is estimated at $8 billion, with Samsung SDI expected to invest $4 billion. Analysts said the massive investment plan was a sign of a change in Samsung Group's conservative approach to the electric vehicle battery business.

It is understood that Samsung SDI is promoting the establishment of a joint venture with General Motors, which is expected to be officially announced this month. The two companies plan to build plants with an annual production capacity of about 50GWh, enough to power about 670,000 electric vehicles with a range of 500 kilometers. To this end, Samsung SDI and GM will each invest about $2 billion.

Meanwhile, Samsung SDI is pushing for a separate joint venture with Volvo, which is expected to be formally announced in December. The size of the joint venture is similar to that of the Samsung-GM joint venture. The two companies will each invest about $2 billion in the joint venture factory to produce 50GWh of batteries per year. Volvo's parent company is China's Geely, and strives to fully transition to an EV brand by 2030.

In addition, in May this year, European automakers Stellantis and Samsung SDI announced that they will jointly invest in setting up a factory in Indiana, USA, to produce battery parts used in electric vehicles, with the goal of starting operations in 2025.

Therefore, Samsung SDI will become a partner with the world's three major automakers - General Motors, Volvo and Stellantis.

Previously, Samsung executives said the company would not make electric vehicles under its own brand. The main reason is that Samsung does not believe its efforts in the field of finished electric vehicles will lead to sustainable profits. As a leading supplier of components to the electric vehicle industry, Samsung also wants to avoid any potential conflicts of interest with these customers.