Reuters reported on the 24th, citing sources, that General Motors (GM), an American automobile company, and Samsung SDI are expected to announce plans to build a joint battery plant in the United States on the 25th (local time) at the earliest. It has been mentioned that the collaboration between the two companies will be counted down, but this is the first time that a specific date has been specified.
In particular, the 25th is the second day of President Yoon Seok-yeol’s visit to the United States, and a business roundtable is scheduled for cooperation between Korean and American businessmen, including Samsung Electronics Chairman Lee Jae-yong.
Reuters previously reported that in January of this year, GM and LG Energy Solutions had decided to abandon their plan to build a fourth battery plant in the United States. LG Energy Solutions, GM’s largest battery partner, is currently building a $2.6 billion (3.5 trillion won) joint venture plant with GM in Michigan, with the goal of completion in 2024. Citing sources, Reuters added, “GM and Samsung SDI’s new plant is expected to make more investments than the Michigan battery plant.”
GM has announced that it will produce about 400,000 electric vehicles in North America from 2022 to mid-2024, and increase its annual production capacity to about 1 million by 2025. It seems to be preparing for the rapidly increasing demand for electric vehicles by securing a cooperative relationship with Samsung SDI following LG Energy Solutions. Previously, Ford announced that it would form a partnership with China’s CATL, which is relatively inexpensive, in the form of a license, and even within the US Congress, there is a backlash saying, “We should not hold hands with China.” Samsung SDI is building a battery factory by investing 2.5 billion dollars (3.3 trillion won) in Stellantis and Indiana.
The joint venture between GM and Samsung SDI has been reported several times, but it is attracting more attention because it is reported by foreign media ahead of the Korea-US summit. Reuters mentioned that US President Joe Biden visited Samsung during his visit to Korea last year and emphasized the cooperative relationship between US labor unions and Korean battery companies, adding, “We are waiting for a summit meeting with President Yoon this week.”
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.