Battery Big 3 Fully Charged with Competitive Spirit in North America

Samsung SDI Breaks Ground on Indiana Plant with Stellantis

LG Energy Solution Establishes Joint Venture and Production Facility in Michigan with GM

SK On Partners with Ford for Investments in Tennessee and Kentucky

[Asia Economy Reporter Oh Hyung-gil] The three major battery companies have finalized their entry into the North American market. They are accelerating their independent ventures while forming alliances with automakers. It is expected that by securing a foothold in North America, the world's largest automobile market, they will gain an advantage in competition against Chinese and Japanese companies.

On the 24th (local time), Samsung SDI signed a joint venture agreement to establish an electric vehicle battery cell and module joint corporation with Stellantis, the world's fourth-largest automaker, and the government of Kokomo, Indiana, USA.

The signing ceremony was attended by government officials including Eric Holcomb, Governor of Indiana; Bradley Chambers, Indiana Secretary of Commerce; Tyler Moore, Mayor of Kokomo; as well as Samsung SDI CEO Choi Yoon-ho and Mark Stewart, Stellantis North America COO (Chief Operating Officer).

The two companies plan to begin construction of the factory in Kokomo by the end of this year and start mass production of batteries from the first quarter of 2025. The annual production capacity is initially set at 23GWh, with plans to expand to 33GWh in the future. The investment amount, which started at $2.5 billion (3.1 trillion KRW), is expected to increase to $3.1 billion (3.9 trillion KRW).

Kokomo, where the factory will be located, already hosts Stellantis' parts manufacturing plant, and with the addition of the battery joint factory, it will emerge as Stellantis' electric vehicle production base. Samsung SDI plans to transfer its proprietary battery brand 'PRiMX' development technology to the joint venture to supply high-efficiency batteries.

Choi Yoon-ho, CEO of Samsung SDI, said, "We thank the Indiana state and Stellantis officials who helped select the joint venture site. Through this partnership with Stellantis, we have established a solid foothold in the rapidly growing North American electric vehicle market and will contribute to achieving climate change goals."

With this establishment plan, all three domestic battery companies have secured production bases in North America. LG Energy Solution formed Ultium Cells in partnership with GM and set up production facilities in Ohio, Tennessee, and Michigan. They are also building a joint factory with Stellantis in Ontario, Canada. Additionally, they have standalone factories in Michigan and Arizona.

SK On, through the joint venture BlueOvalSK with Ford, is constructing battery plants in Tennessee and Kentucky. They also operate the largest battery production plant in the U.S. in Georgia. As Hyundai Motor Group has designated Georgia as its exclusive electric vehicle production base, cooperation between the two companies is expected to be further detailed. Industry estimates suggest that the investment scale of the three battery companies in North America will reach 17.5 trillion KRW by 2025.

The reason battery companies are rushing to enter the North American market is due to the U.S. government's eco-friendly vehicle transition and the 'Buy American' policy. U.S. President Joe Biden has announced a plan to make 50% of new vehicle sales eco-friendly by 2030. Furthermore, under the 'United States-Mexico-Canada Agreement (USMCA)' effective from July 2025, at least 75% of parts used in production must be made in the U.S. to qualify for tariff-free export benefits.

As automakers increase electric vehicle production, battery companies' market entry is expected to accelerate. According to SNE Research, demand for secondary batteries for electric vehicles in the U.S. is projected to grow from 453GWh in 2025 to 1,200GWh by 2030.

On the 17th, visitors attending 'InterBattery 2022' held at COEX in Samseong-dong, Gangnam-gu, Seoul, are examining a POSCO battery pack model for electric vehicles made with composite materials at the POSCO Chemical exhibition hall. Photo by Hyunmin Kim kimhyun81@

This content was produced with the assistance of AI translation services.