General Motors Co. and partner Samsung SDI are planning to build a more than $3 billion electric vehicle battery cell plant in New Carlisle, Indiana, according to a Tuesday press release from Indiana Gov. Eric Holcomb’s office.
The plant, to be built outside of South Bend, will create 1,700 manufacturing jobs to support production of GM’s future EVs. Operations at the GM and Samsung joint-venture plant should begin in 2026.
The announcement comes after GM received tax incentives for the plant from St. Joseph County Council in Indiana. In May, the council unanimously approved a development agreement and tax abatements for the project that will be the largest seen in the area.
“GM has long been one of America’s most iconic brands and deeply rooted in Indiana,” Holcomb said in a statement. “For decades, Hoosier communities like Marion, Bedford and Fort Wayne have been part of the production of countless firsts for family vehicles. And, now today, I couldn’t be more excited to again see GM alongside one of Indiana’s newest world class companies, Samsung SDI, take this giant leap and make this $3 billion commitment that will transform the automotive industry aided by our proud Hoosier workforce.”
On Monday, GM announced a $632 million investment at its Fort Wayne, Indiana, light-duty truck plant for production of next-generation internal combustion engine pickups.
GM, which is planning to have the capacity to make more than 1 million EVs in North America by 2025, will use this facility to build nickel-rich prismatic and cylindrical cells. Once complete, the plant will have more than 30 gigawatt hours of capacity.
“This joint venture and the 1,700 people there will help supply cells for millions of all-electric vehicles for customers across North America,” GM CEO Mary Barra said in a statement. “The strong support of local and state leaders in Indiana and the combined resources and expertise of GM and Samsung SDI will help us move faster than we could on our own.”
GM and Samsung plan to start construction of the new plant within the next year. The construction will support more than 1,000 jobs.
President Joe Biden in a statement called the Samsung and GM announcement “another example of how companies are investing in America, building the industries of the future in America, and creating jobs in America. Our work to build a clean energy economy is unleashing record private sector manufacturing investment, driving companies to shore up our supply chains here at home, and lowering energy costs for working families.”
He added that “manufacturing investments are made stronger by collective bargaining relationships with American unions, and I urge any company investing in the United States to enter into partnerships with the most highly skilled workers in the world — American union members.”
The United Auto Workers has organized one battery plant so far, a Warren, Ohio, facility owned by GM and LG Energy Solution, and will push to organize the others as they become operational. Similar to its partnership with Samsung, GM has a joint venture with LG called Ultium Cells LLC.
To support the GM-Samsung project, the St. Joseph County Council approved 100% tax abatements for real-estate property for 10 years and for tangible personal property for 15 years. In exchange, GM will pay a $4.5 million infrastructure fee per year for 10 years to cover costs for sewer extensions, road improvements and new fiber optic cables.
It’s estimated that the total net savings for the 15 years of the abatement will be about $332.9 million, St. Joseph County Economic Development Director Bill Schalliol previously told The Detroit News.
The Indiana Economic Development Corporation is still working with GM and Samsung on an expected performance-based incentive offer for the project.
The plant property is in New Carlisle, which is 20 minutes west of South Bend near the Michigan border. It’s inside the Indiana Enterprise Center and has access to rail and is near interstates, according to a description on St. Joseph County’s website.
GM and LG, the automaker’s other Korean battery partner, were previously looking at the site for a fourth battery plant they were planning to build together and operate through their Ultium Cells joint venture. The companies halted those plans in January. Ultium Cells already operates a battery plant in Warren, Ohio, and is constructing two additional factories in Michigan’s Delta Township and Spring Hill, Tennessee.
