Why Is General Motors Exiting Its Indiana Battery Joint Venture?

General Motors is exiting its Indiana battery joint venture by selling its 49.99% stake in the $3.5 billion plant to Samsung SDI, making Samsung the sole owner. The move reflects softer-than-expected U.S. EV demand after the federal $7,500 tax credit expired in September 2025, prompting automakers to reduce production plans and battery investments. GM says it will still work with Samsung SDI on next-generation prismatic battery cells and continue sourcing batteries from the company. The decision reduces GM’s direct exposure to battery manufacturing at a time when it has already booked about $6 billion in EV-related charges and is facing broader EV strategy slowdowns. The article frames the transaction as part of a wider industry pullback from capital-intensive EV supply-chain commitments, with Ford’s BlueOval SK venture also being wound down and Tesla shifting resources toward Optimus production.