GM to sell Indiana battery venture stake to Samsung SDI, Bloomberg reports

• Samsung SDI will acquire the 680-acre New Carlisle, Indiana facility and full ownership of the joint venture, which was announced two years ago with planned 27 gigawatt-hour annual capacity and 2027 production start
• Construction at the plant had already slowed this year due to weak EV demand after the $7,500 federal tax credit was eliminated in September, causing GM and other automakers to reduce EV manufacturing output
• GM previously pivoted another battery joint venture in March, converting a Tennessee plant with LG Energy Solution from EV batteries to energy storage systems

Summary: GM Divests Indiana Battery Venture Stake to Samsung SDI

General Motors is selling its 50% stake in a $3.5 billion electric-vehicle battery joint venture in Indiana to partner Samsung SDI, according to Bloomberg sources. The deal marks a significant pullback from GM's EV battery manufacturing ambitions amid weakening demand.

Key Details:

• Transaction: Samsung SDI will acquire the 680-acre New Carlisle, Indiana property and assume full ownership of the battery-making facility
• Original Plan: The joint venture, announced two years ago, was designed for 27 gigawatt hours of annual production capacity with mass production targeted for 2027
• Current Status: Construction at the plant had already slowed earlier this year due to soft EV demand

Market Context:

The divestment reflects broader industry challenges following the elimination of the $7,500 federal EV tax credit in September. GM and other automakers have scaled back EV manufacturing, reducing factory output to align with weakened consumer demand.

This isn't GM's first battery venture restructuring. In March, the automaker partnered with LG Energy Solution to repurpose a Tennessee EV battery plant for energy storage systems instead.

Market Implications:

The move signals automotive manufacturers' strategic retreat from aggressive EV expansion plans in response to market realities. With government incentives removed, automakers are reassessing capital-intensive battery production investments. Samsung SDI's acquisition positions the South Korean supplier to potentially serve multiple automaker clients rather than a single partnership, potentially improving utilization rates.

Neither GM nor Samsung SDI has officially commented on the reported transaction. The deal underscores the evolving dynamics in the EV supply chain as manufacturers adjust to demand volatility.