SAMSUNG SDI has acquired GM's stake in the joint $3.5 billion SynergyCells venture in New Carlisle.
SAMSUNG cited changing market conditions for the change in ownership. GM held a 49.9% stake in the venture.
Jeff Rea, president and CEO of South Bend Regional Chamber, said this is good news for the region. Construction had come to a halt on the battery manufacturing facility, but this announcement assures the project will move forward, he said.
“For many communities, a change in ownership structure could raise concerns. Here in St. Joseph County, however, the announcement should be viewed as an encouraging sign,” said Rea in his “Jeff's Take” column. “A project that faced uncertainty amid shifting market conditions is moving ahead under the leadership of a global company that continues to see value in this location, this workforce, and this region's future.”
The Aug. 11 agreement also spelled out a new SAMSUNG and GM joint project to develop a prismatic battery cell for EV use.
“While reflecting recent market changes, this acquisition decision is to continue the strategic partnership with GM,” said a SAMSUNG SDI official in a press release. “We will continue our commitment to an electrified future with the partner, while utilizing the plant to proactively respond to the fast-growing ESS market in the U.S.”
The acquisition means that Seoul, Korea-based SAMSUNG SDI will operate the battery production plant independently. Once completed, the plant will make energy storage systems to meet growing demand in that sector. Future plans include the possible production of the prismatic cells at the St. Joseph County plant.
Rea said the facility once was expected to employ 1,600 people, but details of the new agreement are still unknown. The 680-acre site is part of the Indiana Enterprise Center.
