GM to Sell Stake in $3.5 Billion Indiana Battery Plant to Samsung SDI Amid Slowing EV Demand
General Motors (GM) is planning to sell its stake in an electric vehicle (EV) battery manufacturing joint venture in Indiana to its South Korean partner, Samsung SDI. The move reflects a broader trend among automakers reassessing their EV investments in response to cooling demand growth and the rollback of supportive government incentives.
According to a Bloomberg report citing people familiar with the matter, Samsung SDI plans to acquire GM’s share in the $3.5 billion joint venture. This acquisition will grant the South Korean firm full ownership of the planned battery manufacturing facility in New Carlisle, Indiana, along with the sprawling 680-acre site it occupies.
Project at a Glance:
FeatureDetails
LocationNew Carlisle, Indiana (680-acre site)
Total Investment$3.5 Billion
Target Annual Capacity27 Gigawatt-hours (GWh)
Commercial LaunchScheduled for 2027
Announced two years ago, the joint venture was originally a cornerstone of GM’s strategy to bolster domestic EV battery production within the United States and reduce its reliance on external supply chains.
Slowing Demand Reshapes Battery Investments
This divestment comes at a critical juncture for the EV sector, which is currently undergoing a major realignment of investment priorities. As manufacturers face a noticeable slowdown in demand growth, many are being forced to revise their aggressive expansion and production blueprints.
The sector's recent challenges have been compounded by several factors:
Construction Delays: Earlier this year, Reuters reported that construction at the Indiana site had decelerated due to weak EV demand, directly impacting the project's execution timeline.
Loss of Subsidies: The industry came under additional pressure following the elimination of the $7,500 federal EV tax credit in the U.S. last September—a key incentive that had significantly propped up sales in recent years.
Consequently, this shifting landscape has prompted major automakers, including GM, to scale back their production targets. The industry is now pivoting toward aligning output with actual, grounded demand levels, stepping away from the rapid, speculative expansion that dominated the market in previous years.