General Motors is giving up its stake in the Indiana battery plant it planned with Samsung SDI, while Stellantis is also reviewing the future of its own battery partnership with the South Korean supplier. The two situations are separate, but both reflect the same pressure facing automakers that committed billions of dollars to EV battery production when electric-vehicle demand appeared likely to grow much faster.
GM steps back from battery manufacturing as Stellantis reviews Samsung SDI partnership
Samsung SDI has acquired GM’s 49.99% stake in SynergyCells, the joint venture created to build a battery factory in New Carlisle, Indiana. The deal gives Samsung SDI full ownership of the project and establishes its first independently operated battery manufacturing facility in North America.
The plant was originally planned around an investment of approximately $3.5 billion, with initial annual capacity of 27 GWh and potential expansion to 36 GWh. Mass production had been targeted for 2027.
Samsung SDI now plans to adapt the facility to changing market conditions. Once construction is completed, the company intends to initially use the plant for batteries designed for energy storage systems, a market benefiting from renewable-energy expansion, grid upgrades and rising electricity demand from data centers. The factory could later also produce next-generation prismatic cells jointly developed with GM under a separate technology agreement.
Stellantis has already made a similar move with another North American battery investment. In February 2026, the automaker agreed to sell its 49% stake in NextStar Energy to LG Energy Solution, giving its partner full ownership of the Windsor, Ontario, battery operation. More than C$5 billion had already been invested in the facility.
Attention has now shifted to StarPlus Energy, the Stellantis-Samsung SDI joint venture in Kokomo, Indiana. The project includes two battery plants with combined planned annual capacity of approximately 67 GWh.
Reports indicate that Stellantis has been exploring different options for its stake, including a possible sale to Samsung SDI or a third party. No final decision has been announced, and Stellantis has confirmed only that discussions with Samsung SDI regarding the future of StarPlus Energy remain ongoing.
Reducing ownership in battery factories would not necessarily mean abandoning EVs. Stellantis could continue purchasing cells from existing suppliers while committing less capital to manufacturing assets and adjusting supply more quickly to changes in demand.
The broader strategy reflects a more cautious approach to electrification as automakers reassess investments made during the strongest period of EV growth expectations.