Samsung SDI CEO Choi Joo-sun indicated a possible restructuring of US joint ventures with Stellantis and General Motors, as the company explores a strategic pivot from high-end electric vehicle (EV) batteries to more affordable alternatives and the rapidly expanding energy storage systems (ESS) market.
Speaking at a shareholders meeting in Gangnam, Seoul, on Wednesday, Choi addressed speculation surrounding Stellantis’ potential withdrawal from their joint venture, stating, “We are discussing various options.” He further explained that due to softening EV demand in the US, the battery plant in Indiana is reallocating some production lines to energy storage systems, aiming for mass production within this year.
Rumors of Stellantis potentially backing out of the $6.3 billion StarPlus Energy joint venture initially emerged in February, following reports that the automaker was considering reducing EV investments to conserve capital after announcing over 22 billion euros ($25.4 billion) in asset writedowns.
StarPlus Energy, based in Kokomo, Indiana, commenced operations at its first plant in December 2024, serving as a crucial production base targeting the North American EV market. A second plant is currently under construction and scheduled to launch next year.
When questioned about potential adjustments to the GM joint venture during a brief press conference, Choi suggested that “no major shifts” are anticipated, downplaying the possibility of a partnership dissolution. “We’ve just begun constructive discussions with GM and will share any updates if there are changes.”
In 2024, Samsung SDI and GM entered into an agreement to invest $3.5 billion in a battery plant in Indiana, with the goal of achieving 27 gigawatt-hours of annual capacity and initiating mass production by 2027.
Unlike GM’s “Ultium” brand, used for its partnerships with LG Energy Solution and Posco Future M, the collaboration with Samsung SDI is branded “Synergy Cells.” This new branding signals GM’s evolving strategy towards more cost-effective battery chemistries, such as lithium iron phosphate (LFP) and lithium manganese rich (LMR), as opposed to the higher-cost, high-nickel batteries associated with the Ultium platform.
Sources indicate that the Synergy Cells plant is evaluating plans to manufacture LFP or LMR batteries alongside the initially planned premium nickel-cobalt-aluminum (NCA) cells, although a final decision is still pending.
Emphasizing Samsung SDI’s expected return to profitability in the second half of the year, Choi stated, “The company will strengthen its patent strategy to maintain technological leadership” in key areas like prismatic and all-solid-state batteries.
Choi’s comments underscored the company’s unwavering stance against patent infringement. At the InterBattery 2026 conference last week, Samsung SDI issued a warning against intellectual property violations related to prismatic battery technologies, while also introducing its new PrismStack prismatic battery brand and SolidStack all-solid-state cell brand.
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