US automotive giant, General Motors (GM), and South Korea’s Samsung have announced a joint venture to invest $3bn in a new electric vehicle battery plant in the US.
The new electric vehicle battery plant is scheduled to begin production by 2026 and will have an annual production capacity of 30 gigawatts.
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GM is competing with electric car maker, Tesla for market share and has been examining ways to diversify its battery supply chain.
“With multiple strong cell partners, we can scale our EV business faster than we could going it alone,” Doug Parks, GM executive, said.
The two companies said in a joint statement that the plant will produce high-nickle and cylindrical battery cells.
This is not the first joint venture GM has embarked on, most recently linking up with another South Korean battery company LG Energy Solution.
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By GlobalDataGM has been investing in leading South Korean battery makers to capitalise on the Inflation Reduction Act in the US – which provides subsidies to grow domestic manufacturing.
A $2.5bn grant was awarded to GM and LG’s joint venture last year, which is going towards one of three plants the company aims to build in the US.
GM is hoping to build over 400,000 electric vehicles in North America between 2022 and 2024, according to a statement in 2022.
South Korean President Yoon Suk Yeol is currently in the US to meet President Joe Biden, marking the first state visit to the nation in over 10 years.
The visit comes after Biden’s trip to South Korea last year, where he pushed companies to “enter into partnerships” with “American union members”.
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