U.S. General Motors (GM) Chairwoman Mary Barra will visit South Korea to meet with battery partners -- LG Energy Solutions and Samsung SDI -- on Feb. 7. Barra has made several unofficial visits to South Korea since taking office as chairwoman in 2016, but this is the first time she has officially confirmed a trip to South Korea.
According to industry sources, Barra will meet with LG Energy Solution President Kim Dong-myung and Samsung Electronics President Choi Yoon-ho in Seoul on Feb. 7. The two companies are GM’s largest battery partners. LG Energy Solution is running or building three joint ventures with GM in the United States and is in talks with Samsung SDI to build one.
GM has been adjusting its business speed in response to a slowdown in EV sales, recently scrapping its previously stated production goals. Instead, it has announced a plan to re-launch its plug-in hybrid (PHEV) lineup. Nevertheless, the U.S.-based carmaker has judged that LG Energy Solution and Samsung SDI are its long-term partners and the visit has been aimed at strengthening cooperation with the Korean battery makers. LG Energy Solution expects to grow in the early 30 percent range year on year in the North American EV market in 2024, while Samsung SDI 50 percent.
GM may ask the Korean battery makers to change its share of the hundreds of billions of dollars in advanced manufacturing production credits (AMPCs), which the U.S. government gives to battery companies in the United States. GM has already asked LG Energy Solution to allocate AMPCs to the joint venture at a rate of more than 50 percent, which is GM’s equity share in the joint venture.
Some industry observers say that Barra may discuss a schedule for the construction of a joint battery plant with Samsung SDI in the United States. The two companies have secured a site in Indiana with an eye towards starting to run the joint plant, but have yet to sign the binding main agreement. The industry observers have also raised concerns that GM will delay the joint venture with Samsung SDI due to a slowdown in EV sales.