Korean battery makers diversify partners for joint ventures in US

• Published date: 05 March 2023
• Publication title: The Korea Times

Samsung SDI is set to establish a joint venture with General Motors, joining the latest trend of Korean electric vehicle (EV) battery makers diversifying their partnerships with global carmakers, according to industry officials, Sunday.

The battery manufacturing unit of Samsung Group will reportedly sign a memorandum of understanding with the U.S. carmaker in the state of Michigan on Wednesday, in order to build a joint battery plant. Samsung SDI CEO Choi Yoon-ho and GM CEO Mary Barra are expected to attend the signing ceremony.

Until last year, GM was considering building a fourth EV battery plant in Indiana with LG Energy Solution (LGES), as the two companies had been operating their joint venture named Ultium Cells.

LGES, however, remained skeptical about the plan due to the uncertain macroeconomic outlook and a conflict with the U.S. carmaker over how to respond to a unionization drive by workers at Ultium Cells' Ohio factory. As a result, GM started looking for another partner for the project, sparking speculation that Samsung SDI may replace LGES for the construction of GM's fourth EV battery plant.

During January's conference call on its fourth-quarter earnings, Samsung SDI also indicated its intention to set up another joint venture with a U.S. carmaker, following one it established in collaboration with Stellantis. In response to questions about the potential new joint venture, the Korean EV battery maker said it was in talks with its multiple customer companies regarding this issue.

"There have been more opportunities for carmakers and battery manufacturers...