General Motors is stepping back from another major battery manufacturing venture as the automaker adjusts its electric vehicle strategy to slower-than-expected EV demand in the United States.
Samsung SDI has acquired GM’s 49.99% stake in SynergyCells, the $3.5 billion joint venture developing a battery cell factory in New Carlisle, Indiana. The deal gives Samsung SDI full ownership of what is expected to become its first independently operated battery production facility in North America.
The move comes as GM continues to scale back or restructure parts of its EV investment strategy while shifting its focus toward lower-cost battery technologies.
Samsung SDI to Own Indiana Battery Plant
GM and Samsung SDI originally announced plans for the Indiana battery factory in 2023, with the project formally structured as a joint venture.
The companies planned to invest approximately $3.5 billion in the facility, initially targeting production capacity of 27 GWh annually. That capacity was later expected to increase to 36 GWh.
The 275-hectare site was projected to create more than 1,600 jobs. Production was originally scheduled to begin in 2026 but has since been pushed back to 2027.
The plant is not yet operational.
Samsung SDI said the decision to acquire GM’s stake reflects changes in the market since the companies established their partnership, particularly the slower-than-expected growth of EV demand.
Once completed, the Indiana facility will initially be used to manufacture batteries for energy storage systems (ESS), allowing Samsung SDI to target the rapidly expanding U.S. stationary energy storage market.
“While reflecting recent market changes, this acquisition decision is to continue the strategic partnership with GM,” a Samsung SDI spokesperson said.
The company added that the facility will allow it to respond proactively to growing demand for energy storage batteries in the United States.
GM and Samsung SDI Still Plan to Develop EV Batteries
GM’s exit from the joint venture does not mean the partnership with Samsung SDI is ending entirely.
The two companies have signed a new agreement to jointly develop a next-generation prismatic battery cell for potential future electric vehicles.
Samsung SDI said the Indiana plant could potentially manufacture the jointly developed prismatic cells in the future, although there is no confirmed production plan at this stage.
The companies are targeting prismatic batteries with high energy density and fast-charging capabilities.
That leaves the door open for GM to use the Indiana facility for EV battery production later, but the immediate focus will be on energy storage systems.
Why GM Is Moving Away From Nickel-Rich Batteries
GM and Samsung SDI originally planned to produce nickel-rich prismatic battery cells at the Indiana factory.
Prismatic cells have several advantages over pouch cells. Their rigid design makes them easier to stack and can simplify battery-pack integration. They can also be used in cell-to-pack and cell-to-body architectures, potentially increasing energy density while reducing the number of components and manufacturing costs.
However, GM now appears to be moving away from this particular battery strategy.
The automaker continues to work with LG Energy Solution on lithium manganese-rich (LMR) prismatic battery cells. LMR technology is designed to provide a lower-cost alternative to conventional nickel-manganese-cobalt (NMC) batteries while offering competitive energy density.
The technology could also help GM reduce battery costs as automakers face increasing pressure to make EVs more affordable.
Another Battery Plant Exit for GM
GM’s decision to leave the Samsung SDI joint venture follows another major battery-related withdrawal.
In 2024, GM sold its stake in a battery cell plant in Lansing, Michigan, to LG Energy Solution. The facility had originally been planned as another joint project between the two companies.
GM still operates several battery facilities in the United States, but its battery manufacturing strategy has changed considerably as EV sales growth has fallen short of earlier expectations.
The automaker announced a $1.6 billion write-down related largely to its EV business in October 2025. In January 2026, GM announced another $6 billion write-down as it reassessed its electric vehicle investments.
The company has also faced a less favorable U.S. EV market following the expiration of the federal $7,500 EV tax credit for vehicle purchases on September 30, 2025.
GM Is Not Alone in Slowing EV Investment
GM’s latest move reflects a broader shift among major automakers operating in the U.S. market.
Ford has also been restructuring its EV operations after facing significant losses in the segment. In April, the automaker announced plans to restructure its Model e electric vehicle division.
Ford had previously dissolved its BlueOval SK battery joint venture with South Korea’s SK On in December 2025. Ownership of three planned battery facilities in Kentucky and Tennessee was subsequently divided between the two companies.
Stellantis has also been affected by slower-than-expected EV adoption and has adjusted its electrification plans.
The changes do not necessarily signal that automakers are abandoning electric vehicles. Instead, manufacturers are increasingly focusing on battery costs, production flexibility and technologies that can remain profitable at lower EV volumes.
What Happens to the Indiana Battery Factory?
For Samsung SDI, taking full control of the New Carlisle facility provides an opportunity to redirect production toward one of the fastest-growing areas of the U.S. battery market.
Energy storage systems are increasingly being deployed alongside renewable energy projects and across the electrical grid, creating demand for large-scale battery installations beyond the automotive sector.
The Indiana plant could therefore begin its life as an ESS battery factory rather than the EV-focused facility originally envisioned by GM and Samsung SDI.
At the same time, the new agreement between GM and Samsung SDI leaves open the possibility that the facility could eventually produce next-generation prismatic cells for electric vehicles.
For GM, the transaction represents another step toward a more cautious EV strategy. Rather than continuing to invest heavily in battery production capacity designed around a slower-growing market, the automaker is reducing its exposure while continuing to develop potentially lower-cost battery technologies.
The $3.5 billion Indiana battery project is therefore moving forward, but with a very different purpose from the one originally announced.
