Aug 11 (Reuters) - South Korean battery maker Samsung SDI said on Tuesday it will end its joint venture agreement with General Motors in Indiana and acquire the U.S. firm's 49.99% stake, citing weaker-than-expected electric vehicle demand.
Here are some details:
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Samsung SDI said in a regulatory filing that it plans to use the wholly owned unit - SDI-GM Synergy Cells Holdings - to respond to market demand for batteries across various applications, including energy storage systems (ESS) and EVs.
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The company said its existing investment plan would change following the shift to a wholly owned unit, but specific investment plans had not yet been finalised. The company said it would make further disclosures in accordance with regulatory requirements.
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"The ownership change was made in consideration of market changes since the joint venture was announced – including the slower-than-expected growth of EV demand. The two partners have now decided to seek other forms of cooperation other than the joint venture," Samsung SDI said in a statement.
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Separately, Samsung SDI said it has signed an agreement with GM to jointly develop next-generation prismatic batteries for potential future EV applications.
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Reuters had reported earlier this year that construction at the plant had slowed amid weak demand for EVs.
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GM and other automakers pulled back on EV manufacturing following the loss of a $7,500 federal tax credit last September. While automakers continue to build and sell EVs, they have lowered factory output to match demand.
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The joint venture was announced two years ago and was initially expected to have an annual production capacity of 27 gigawatt hours, with an aim to start mass production in 2027.
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In March, GM and LG Energy Solution also announced a decision to transform another EV battery plant in Tennessee to make batteries for ESS.
Reporting by Anusha Shah in Bengaluru; Joyce Lee and Heekyong Yang in Seoul; Editing by Rashmi Aich, Sonia Cheema and Ed Davies
Source: Reuters