General Motors, Samsung To Build $3 Bln EV Battery Plant In Indiana

(RTTNews) - General Motors (GM) and Samsung SDI will build a more than $3 billion electric vehicle battery cell plant in northern Indiana.

The 656-acre site in New Carlisle, about 15 miles west of South Bend, has been chosen for the facility, which is expected to create 1,700 manufacturing jobs. The project, known as Ultium Cells LLC, is a joint venture between GM and South Korea-based LG Energy Solution. The decision to select the site follows several months of anticipation and negotiations.

The origins of the project trace back to August last year when Ultium Cells filed a tax-abatement application for what was initially planned as a $2 billion facility. In September, the St. Joseph County Council approved an economic development agreement and tax incentive package. However, plans were halted in January after GM and LG Energy Solution failed to reach an agreement on building their fourth plant together.

In April, GM announced a new joint venture with Samsung SDI, and the St. Joseph County Council subsequently amended the original agreement and incentives to align with the new partnership. The plant, located in the Indiana Enterprise Center, will host production lines for nickel-rich prismatic and cylindrical cells, enhancing the accessibility and affordability of electric vehicles (EVs).

Construction of the facility is expected to commence within the next year, with production anticipated to begin in 2026. While the exact size of the plant has not been specified, the initial plans for Ultium Cells called for a 2.5 million square feet area. Once operational, the facility will have an annual capacity of over 30 gigawatt-hours.

Indiana Governor Eric Holcomb expressed his excitement about the investment, stating that it showcases Indiana's commitment to creating a future of mobility and expanding customer options in the automotive industry. The project has been hailed as the largest single investment and job commitment in St. Joseph County in the past 75 years. Carl Baxmeyer, president of the St. Joseph County Board of Commissioners, emphasized the region's history of innovation in the automotive sector and highlighted the transformative impact this venture will have.

Samsung SDI is already involved in another joint venture with Stellantis, a global automotive corporation, for constructing a more than $2.5 billion EV battery facility in Kokomo, Indiana. Yoonho Choi, president and CEO of Samsung SDI, expressed gratitude for the opportunity to contribute to Indiana's economy and job creation through the battery joint venture with GM. The collaboration aims to supply high-quality and safe products, supporting the transition to an era of electric vehicles in the United States.

The Indiana Economic Development Corp. is finalizing an incentive package for the project. In addition to St. Joseph County, Indiana Michigan Power based in Fort Wayne and Northern Indiana Public Service Co. in Merrillville have also offered incentives. GM's recent announcement of investing $632 million in its Fort Wayne Assembly plant, along with $491 million to expand and upgrade its Marion Metal Center and $45 million in its Bedford Casting Operations, further demonstrates the company's commitment to Indiana. GM currently employs over 5,700 individuals across the state.