SEOUL/WASHINGTON (Aug 28): South Korea's Samsung SDI said on Wednesday that it has completed an agreement with General Motors to build a joint electric vehicle (EV) battery factory in the US state of Indiana.

The two companies will invest about US$3.5 billion (RM15.2 billion) to build a battery cell manufacturing plant with an annual production capacity of 27 gigawatt hours (GWh) initially, Samsung SDI said in a statement.

Shares of Samsung SDI rose as much as 3.2% in morning trade, versus benchmark KOSPI's 0.3% fall.

The plan was first announced in April 2023, when GM and Samsung SDI said the joint venture would cost more than US$3 billion, with planned production capacity of 30GWh and operations to begin in 2026.

The South Korean battery maker said on Wednesday that the joint plant aims for mass production in 2027, and annual capacity is expected to potentially rise to 36GWh under expansion plans.

Kurt Kelty, GM vice president of battery cell and pack, said he had joined Samsung SDI's chief executive officer to finalise the battery joint venture.

Kelty said the plant will have the "capability to expand up to 36GWh, building prismatic cells, which will be added to our battery technology portfolio, helping us to continue to increase performance and lower costs in the future".

Last year, GM said it expected that the Indiana plant would have production lines to build both nickel-rich prismatic and cylindrical cells.

In June, GM cut its annual EV production forecast, as the automaker banks on demand from its gasoline-powered models. GM projected the higher end of its 2024 EV production to be 250,000 units, down from a prior forecast of 300,000 units.

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