[Edaily Reporter SOYEON KIM ] As the stagnation in electric vehicle (EV) demand persists, joint ventures (JVs) formed between U.S. automakers and South Korean battery companies are one after another taking steps to dissolve. Although they had agreed to establish JVs and build factories together, the prolonged slowdown in EV demand has led them to convert these joint-venture factories into independent facilities one by one.

However, from the perspective of battery companies, this is seen as a rational choice, as it reduces JV risks while allowing them to respond to the rapidly growing North American markets for artificial intelligence (AI) data centers and energy storage systems (ESS) for power grids. The strategy involves converting joint-venture plants into independent facilities and then flexibly utilizing production lines to expand ESS battery production.

According to industry sources on the 12th, SAMSUNG SDI CO.,LTD. announced the previous day that it would convert Synergy Cells—a joint venture with U.S. automaker General Motors (GM) currently under construction in Indiana—into an independent plant. SAMSUNG SDI CO.,LTD. will acquire GM’s entire stake (49.99%) in Synergy Cells, thereby securing 100% ownership. The purchase price will not be disclosed per mutual agreement between the two companies.

SAMSUNG SDI CO.,LTD. plans to use the Synergy Cells plant to respond flexibly to the North American energy storage system (ESS) market. As demand for electric vehicle batteries slows while demand for ESS—particularly for data centers and power grids—is growing rapidly, the company plans to establish an ESS battery production line at the plant.

Previously, in February, LG Energy Solution acquired the entire stake in NextStar Energy—a Canadian joint venture with global automaker Stellantis—transforming it into an independent plant with 100% ownership. It acquired the JV stake from Stellantis for a symbolic amount of $100, converting it into a standalone entity. The NextStar Energy plant in Canada also produces ESS batteries.

LG Energy Solution also acquired Plant 3 of Ultium Cells, its joint venture with GM, for approximately 3 trillion won. By acquiring all assets related to Plant 3, the company transitioned it into a standalone facility.

The company is successively converting joint-venture plants—which were established in partnership with U.S. automakers during a period of rapidly growing demand for electric vehicles—into standalone facilities.

SK On also completed the restructuring of BlueOvalSK, its joint venture with U.S. automaker Ford, last May and converted its Tennessee plant into an independent facility. Under this arrangement, SK On operates the Tennessee plant independently, while Ford owns and operates the two plants in Kentucky under BlueOvalSK. Through this move, SK On is expected to reduce its debt burden—amounting to approximately 5.4 trillion won—and enhance its ability to respond to changes in North American battery demand.

Consequently, the number of plants in North America currently operated as joint ventures between U.S. automakers and South Korean battery companies has been reduced to include LG Energy Solution and GM’s Ultium Cells Plant 1 in Ohio and Plant 2 in Tennessee, as well as SAMSUNG SDI CO.,LTD. and Stellantis’ StarPlus Energy plant in Indiana.

An industry official stated, “North American automakers are scaling back or revising their electrification plans,” adding, “Consequently, converting joint-venture plants into standalone facilities and shifting production lines to cater to the North American energy storage system (ESS) market, where demand exists, is a rational choice.”