May 30, 2025 | Indiana, USA — South Korea’s Samsung SDI and General Motors (GM) reached an agreement to introduce a lithium iron phosphate (LFP) battery production line at their joint venture factory in Indiana, scheduled to commence operations in 2027.
Located in New Carlisle, this $3.5 billion EV battery plant was originally intended to produce high-nickel nickel-cobalt-manganese (NCM) prismatic cells. The new agreement will enable the facility to co-produce LFP batteries alongside NCM cells, marking a notable strategic pivot toward cost-effective LFP chemistry.
Industry analysts note LFP batteries are significantly cheaper and offer enhanced safety—though at modest energy density trade-offs—making them ideal for mass-market EVs. GM plans to use LFP chemistry in key mainstream models, including the Chevrolet Bolt and Silverado EV, aiming to cut pack costs by as much as $6,000 per vehicle.
This development aligns with GM’s broader battery strategy. Samsung SDI will retrofit part of the New Carlisle factory, converting some NCM lines to LFP-capable production. In parallel, LG Energy Solution, GM’s other battery partner, is evaluating converting segments of its Tennessee and Ohio Ultium Cell plants for LFP output.
The addition of LFP production addresses growing US demand for cost-effective EV models and aligns with competitive pressures from Tesla, Ford, and Stellantis. LFP-based vehicles like the Tesla Model 3/Y, Ford Mustang Mach-E, and Rivian R1T/R1S have seen rising sales, highlighting this chemistry’s increasing global relevance.
A LinkedIn post by industry insider Natalia Zeng confirmed the timeline: “On May 29, Samsung SDI and General Motors agreed to introduce a lithium iron phosphate battery production line … in the Indiana joint venture in 2027”.
This shift reflects strategic flexibility: GM intends to leverage LFP cells for mainstream, cost-sensitive models, maintain high-density NCM packs for premium offerings, and explore future “rich-manganese” (LMR) chemistries for heavier-duty EVs.
Local economic impact is also significant. The plant, located on a 680-acre site, will support approximately 1,600 jobs. It has already received local tax incentives and state support—reflecting strong state-level backing for EV infrastructure.
This 2027 LFP production line marks one of the earliest large-scale LFP battery plants in the US, underscoring a pivotal shift toward more affordable, domestically produced EV batteries—potentially reshaping both GM’s portfolio and the wider North American EV landscape.