Korea’s Samsung SDI to buy out GM’s stake in $3.5 bn US battery venture to tap ESS market

The Trump administration is shifting EV policy by scrapping consumer EV tax credits and stalling charging funding, while also launching support for EV supply chains. It unveiled $3 billion for critical mineral projects and Ex-Im Bank loans, including $25 million for Westwater Resources’ graphite processing plant. It also backed Sila Nanotechnologies with $1.4 billion and Niron Magnetics with $150 million.

General Motors said in a Tuesday filing it secured a purchasing facility of up to $4.5 billion with Procura Auto Parts to prepay select suppliers and reduce supply chain disruption risk. Funding is via a bank syndicate led by JPMorgan Chase and Banco Santander. GM will repay through IPUs no later than July 31, 2029, with interest and fees. Payments are excluded from adjusted automotive free cash flow until inventory is bought.

GM and Samsung SDI will jointly develop next-generation prismatic battery cells for potential future EV use. Samsung SDI acquired GM’s 49.99% stake in their SynergyCells joint venture plant in New Carlisle, Indiana, taking full control as EV demand growth slows. The plant will initially make batteries for energy storage systems, with potential later production of GM-linked prismatic cells.

General Motors is selling its 50% stake in the New Carlisle, Indiana EV battery joint venture to Samsung SDI, according to Samsung. The $3.5 billion plant faced delays as EV demand growth lagged. Samsung SDI will own the unit and plans to use it for batteries for EVs and energy storage. GM and Samsung SDI will pursue other cooperation, including next-gen battery co-development.

General Motors (NYSE:GM) edged up premarket after Samsung SDI agreed to buy GM’s 49.99% stake in their Indiana battery joint venture. Samsung SDI cited slower-than-expected EV demand growth. Bloomberg reported the planned investment at $3.5 billion. The companies also plan to collaborate on next-generation prismatic batteries; terms and revised spending were not disclosed.

General Motors said Chevrolet will stop selling new cars in China, ending retail operations after nearly 21 years, according to the company. GM noted Chevrolet previously sold over 760,000 units annually and reached more than 7.5 million Chinese owners. GM added it will keep producing in China but refocus on exporting vehicles to markets outside the US.