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March 26, 2025 – Samsung SDI and General Motors (GM) have announced a strategic expansion of their battery partnership. The two companies will co-develop next-generation prismatic batteries, a key technology shift for electric vehicles. Additionally, Samsung SDI will acquire GM's stake in their existing joint venture, giving the Korean battery maker full control of the production facility.
The deal marks a significant step in the evolution of the GM-Samsung SDI relationship. Originally formed in 2023, the joint venture has been producing pouch-type batteries for GM's electric lineup. The new agreement pivots toward prismatic cells, which are increasingly favored by automakers for their structural rigidity, thermal stability, and space efficiency.
Prismatic batteries use a rectangular, hard-shell casing, offering better packaging density and cooling compared to cylindrical or pouch cells. They are becoming the preferred form factor for many global automakers, including BMW, Volkswagen, and now GM. Samsung SDI, a leading developer of prismatic cells, will bring its extensive experience in this technology to the partnership.
For GM, the shift to prismatic cells aligns with its Ultium platform evolution. The company has been seeking cost reductions and energy density improvements to remain competitive against Tesla and Chinese EV makers. Samsung SDI's prismatic technology is expected to deliver higher energy density and faster charging than current GM batteries.
Under the terms of the deal, Samsung SDI will purchase GM's ownership interest in the joint venture. Financial terms were not disclosed, but industry estimates value the stake at several hundred million dollars. The acquisition will give Samsung SDI full operational control, allowing it to streamline production and integrate the facility into its global supply chain.
This move is part of Samsung SDI's broader strategy to scale up prismatic battery production. The company is investing heavily in new manufacturing lines in South Korea, Hungary, and now the United States. The former joint venture plant will be converted to produce next-generation prismatic cells, with production expected to start in late 2026.
Industry analysts view the announcement as a win-win. "Samsung SDI gains a dedicated US production base for prismatic batteries, while GM secures a long-term supply partner with deep expertise in the technology," said Dr. Li Wei, battery supply chain analyst at Rho Motion. "The early adoption of prismatic cells could give GM a cost and performance edge over competitors still using older form factors."
The deal also comes at a time when the US battery industry is racing to qualify for incentives under the Inflation Reduction Act. By producing cells domestically, both companies can benefit from tax credits, reducing the overall cost of GM's electric vehicles.
The prismatic battery market is expected to grow rapidly, with a compound annual growth rate of over 20% through 2030. Samsung SDI's main rival, LG Energy Solution, has also been expanding its prismatic offerings, but Samsung SDI holds a patent advantage in certain cell chemistries. CATL, the world's largest battery maker, dominates prismatic production but faces trade barriers in the US. This positions the Samsung SDI-GM partnership as a key player in the North American market.
Both companies plan to begin the co-development work immediately, with first samples targeted for 2026. The new prismatic batteries are expected to debut in GM's upcoming electric trucks and SUVs, including the Chevrolet Silverado EV and GMC Hummer EV. Samsung SDI will also supply batteries to other automakers from the expanded facility.
The announcement underscores the accelerating technology race in EV batteries. As automakers demand higher performance and lower costs, partnerships like this one are becoming pivotal. Samsung SDI and GM are betting that prismatic cells will become the standard for next-generation electric vehicles, and their joint efforts could reshape the supply chain.
The Samsung SDI-GM prismatic battery collaboration is more than just a technology pivot—it's a strategic realignment that gives both companies a competitive foothold in the rapidly evolving EV battery landscape. With Samsung SDI acquiring full joint venture ownership and both firms committing to next-gen prismatic cells, the partnership is set to deliver tangible benefits in range, cost, and production efficiency.
As the industry watches, this deal may well become a template for other automakers and battery suppliers looking to co-develop next-generation technologies while securing supply chains.
