Benzinga - General Motors Co (NYSE:GM) inked a deal with battery manufacturer Samsung SDI Co Ltd to expand battery cell manufacturing.
What Happened: General Motors and Samsung will invest $3 billion into a new electric vehicle battery manufacturing plant based in the U.S., the companies announced. South Korea’s Yonhap news agency first reported about the partnership last month.
The companies have not disclosed the exact location of the new plant.
GM's total U.S. battery cell capacity will be about 160 Gigawatt hours when the factory is at full production.
Why It Matters: Detroit-based GM already has a joint venture in place with South Korea’s LG Energy Solution– Ultium Cells LLC. The JV has three battery cell facilities in the U.S. in Ohio, Michigan, and Tennessee. Though last year it was planning to have a fourth plant in Indiana, the plan fell through.
EV makers are trying to diversify their battery supply chains and reduce reliance on China, particularly after the Treasury Department issued fresh guidance on battery sourcing last month. Under the new guidelines, the tax credit amount for EVs will depend on whether the vehicle meets the critical mineral and/or battery component requirements. If a vehicle meets both requirements, it may qualify for the full $7,500 credit as in the case of General Motors’ Cadillac Lyriq.
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