GM Chairman Meets Samsung and LG in One Day... Discusses Battery Issues

Battery Joint Venture Factory Construction and Display
Morning of 7th: Meeting with Samsung SDI, Display, and Electric Representatives
Afternoon: Meeting with LG Electronics and Ensol Representatives

Mary Barra, Chairwoman of General Motors (GM)
[Image source=Reuters, Yonhap News]

Mary Barra, Chairwoman of General Motors (GM), who visited Korea, met consecutively on the 7th with executives from Samsung and LG's battery and automotive electronics (vehicle electric and electronic equipment) divisions to discuss business cooperation plans.

According to industry sources on the 7th, Chairwoman Barra met in the morning at Samsung Seocho Building in Seocho-gu, Seoul, with Yoon-ho Choi, President of Samsung SDI; Ju-seon Choi, President of Samsung Display; Deok-hyun Jang, President of Samsung Electro-Mechanics; and Jeong-bae Lee, Head of Samsung Electronics Memory Business Division (President), among others.

It is reported that Chairwoman Barra and Samsung officials exchanged opinions on the ongoing battery joint factory construction between Samsung SDI and GM, as well as potential cooperation in automotive electronics fields such as displays, camera modules, and high-performance semiconductors.

Samsung SDI is constructing a battery joint factory with GM in Indiana, USA. The joint factory, targeted for mass production in 2026, will have an annual production capacity of over 30 gigawatt-hours (GWh), producing high-performance high-nickel prismatic and cylindrical batteries to supply GM's upcoming electric vehicles.

Despite the slowdown in electric vehicle demand growth, which has led GM to announce production cuts for electric pickup trucks, it is interpreted that GM intends to maintain a close partnership with the Korean industry supplying the core component, batteries.

Samsung Display is also actively entering the automotive display market, supplying organic light-emitting diode (OLED) panels to global automakers such as Audi and Ferrari. Samsung Electronics recently included automotive electronics in its four new business areas announced at CES 2024 in the USA and is expanding product supply of automotive multilayer ceramic capacitors (MLCCs), high-resolution camera modules for autonomous driving, and is also promoting the construction of a local factory in Mexico to secure the North American supply chain.

The meeting was also attended by Michael Mauser, CEO of Harman, Samsung Electronics' automotive electronics subsidiary, who reportedly introduced products and technologies in digital cockpits and vehicle audio fields. Chairwoman Barra listened to explanations on market conditions and technological status related to automotive infotainment displays and advanced driver-assistance system (ADAS) components from these automotive electronics affiliates and discussed cooperation plans.

Attention is also focused on the possibility of expanded cooperation between Samsung Electronics' semiconductor division and GM following this meeting. Previously, Samsung Electronics participated for the first time in the international motor show 'IAA Mobility 2023' held in Munich, Germany, last September, showcasing a lineup of high-performance, low-power, and high-reliability semiconductors targeting the automotive electronics market, including LPDDR5X, GDDR7, UF3 3.1, and Auto SSD. The 'Exynos Auto' series infotainment processors, which enable real-time driving information provision, high-definition multimedia playback, and high-spec gaming within vehicles, continue to improve in performance.

In the afternoon, Chairwoman Barra met with Joo-wan Cho, President of LG Electronics, and Dong-myeong Kim, President of LG Energy Solution, at LG Twin Towers in Yeouido, Seoul, to share the progress of battery and automotive electronics businesses and seek to strengthen cooperation.

LG has maintained a partnership with GM for a long time by supplying batteries and automotive electronics products. LG Energy Solution, which established the North American joint venture Ultium Cells with GM, began mass production of batteries at its first plant in Ohio, USA, in the second half of 2022. The second plant in Tennessee started mass production this year, and the third plant in Michigan is scheduled to begin production after next year.

LG Electronics has had nearly 20 years of ties in the automotive electronics field, supplying telematics modules to GM since 2006, and LG Display also supplies vehicle products including P-OLED to GM's premium models. LG Electronics was selected multiple times as 'Supplier of the Year' by GM, including last year as the best supplier in infotainment and telematics, and LG Display has also received the 'Innovation Award' from GM, maintaining a special relationship.

Meanwhile, GM reaffirmed its intention to cooperate in stabilizing the battery supply chain in the North American market by signing a large-scale cathode material supply contract worth 25 trillion won with LG Chem on the same day. LG Chem plans to supply more than 500,000 tons of North American-made cathode materials to GM from 2026, when the Tennessee cathode material plant is fully operational, through 2035. This amount is sufficient to produce batteries for about 5 million high-performance pure electric vehicles.

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