GM exits $3.5B Indiana battery plant as Samsung SDI takes full control

Samsung SDI is taking full ownership of a battery plant in New Carlisle, Indiana, buying out General Motors' stake in what had been a joint venture. GM and Samsung SDI announced the $3.5 billion plant in 2023, planning to build nickel-rich battery cells for electric vehicles starting in 2027. Samsung SDI says it's making the change because EV demand has grown more slowly than expected. The purchase price wasn't disclosed, and GM's shares fell about 4.5 percent after the news.

GM isn't walking away entirely. The two companies signed a separate deal to keep developing next-generation batteries together, and GM will still buy cells from the plant. But GM no longer owns any part of the factory. Samsung SDI now plans to add a line for energy storage system (ESS) batteries — the kind used to store power on the electric grid or at facilities like data centers, rather than in cars. That's a sign the company sees more near-term demand in grid and storage batteries than in EVs.

The bigger backdrop is the end of the federal EV tax credit, which expired on September 30, 2025. Since then, automakers including GM have pulled back on EV production plans. GM already took a roughly $6 billion charge tied to slower EV plans, and its other battery venture with LG Energy Solution has been idling production and recalling workers. This move doesn't change anything for homeowners directly, but it reflects a broader slowdown in EV demand following the credit's end.