GM Exits Battery Joint Venture, Samsung SDI Buys Stake

Samsung SDI said it bought General Motors’ 49.99% stake in SynergyCells, a battery JV in New Carlisle, Indiana. Samsung SDI called it its first independently operated North America battery base and plans to start with ESS cells. The firms also signed a new prismatic cell development agreement. Samsung SDI cited slower EV demand and said the JV will seek other cooperation forms. The ESS prismatic LFP supply contract is worth over 2 trillion won ($1.35B) starting 2027.

General Motors will lay off 350 employees at Lansing Grand River Assembly and Lansing Regional Stamping starting Jan. 14, citing retooling tied to a $1.25 billion investment for Cadillac sedan production. GM says some workers may return before end-2027 and may receive supplemental unemployment pay under the UAW contract. GM currently builds CT4 and CT5 there.

General Motors said in an 8-K that it set up a three-year purchasing facility with Procura Auto Parts as purchasing agent and supplier for critical parts. The credit line is $4.5 billion. Procura will pay suppliers, hold inventory, and manage supply-chain risk, while GM reimburses on a schedule. The article cites ongoing chip and materials shortages.

General Motors reported adjusted EBIT up 29.8% to $3.94B, with GM North America up 42.7% to $3.4B, and adjusted automotive free cash flow rising to $5B. GM raised 2026 adjusted EBIT guidance to $14B-$16B and adjusted EPS to $12-$14, plus free cash flow to $9.5B-$11.5B. GM also disclosed a up to $4.5B supply chain prepayment deal with Procura Auto Parts backed by JPMorgan and Santander.

The Trump administration announced a $3 billion federal investment in U.S. critical-minerals projects tied to EV and battery supply chains, including a $1.4 billion conditional Pentagon loan to Sila Nanotechnologies for silicon anode materials. Lithium Americas received the first $435 million draw from a $2.23 billion DOE loan for Thacker Pass. Other funding includes graphite and magnet projects.

Detroit automakers say proposed changes to a revised U.S.-Mexico-Canada trade deal could raise costs by at least $2 billion annually per company, Reuters reported. The U.S. wants 50% U.S.-made content for lower tariffs and higher North American content. GM expects $2.5B to $3.5B gross tariff expenses this year; Ford estimates about $1B net. Ford will shift Lincoln production to U.S. from China.