General Motors Company (GM) is selling its 49.99% stake in a $3.5 billion battery plant in New Carlisle, Indiana, to its partner Samsung SDI, making Samsung the sole owner of SDI-GM Synergy Cells Holdings. The transaction follows the establishment of the joint venture in April 2023, and the plant, expected to produce prismatic battery cells, was slated for mass production by 2027, initially targeting an annual capacity of 27 GWh.
This divestiture comes against a backdrop of declining electric vehicle (EV) demand in the U.S., exacerbated by the expiration of a $7,500 federal EV tax credit in September 2025. GM has incurred approximately $6 billion in costs related to scaling back its EV strategy. Despite the ownership change, GM and Samsung SDI will maintain a business relationship, focusing on developing next-generation battery technologies and sourcing batteries.
Ford Motor Company has also faced challenges, terminating its BlueOval SK joint venture with SK On, which aimed to build an $11.4 billion battery manufacturing ecosystem. Meanwhile, Tesla has paused production of its Model S and Model X to shift focus toward its humanoid robot production, reflecting broader industry adjustments amid changing market dynamics.
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