Samsung Electronics Co (OTC:SSNLF) owned battery and electronic materials manufacturer Samsung SDI Co explored building another manufacturing plant in the U.S. as it chased mid-to-long-term growth.

Samsung SDI’s move coincides with President Donald Trump’s plans to scrap $7,500 electric vehicle credit. The Biden administration had launched the EV credit to drive the industry.

The General Motors Co (NYSE:GM) and Stellantis NV (NYSE:STLA) supplier is weighing building a plant independently in North America, CEO Joo Sun Choi told Bloomberg Wednesday.

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The company already plans to build plants in collaboration with General Motors and Stellantis in Indiana and has already completed another facility with Stellantis.

Choi told the Korean Herald Wednesday that the company will commercialize its new 46-series cylindrical batteries for EVs for carmakers looking to power their high-performance EVs.

Choi told the Korean Herald that NextStar Energy’s first battery cell manufacturing plant in the U.S., a joint venture with Stellantis, has ramped up production faster than expected.

The U.S. Advanced Manufacturing Production Credit will likely be reflected in the first quarter of 2025.

South Korean battery makers, including LG Energy Solution and SK On, have pledged a minimum of $54 billion in aggregate investments for battery manufacturing facilities in the U.S., lured by tax credits and a potential rebound in the sector.

Choi told Reuters Wednesday that demand for EVs will remain sluggish until the first half of 2026. He expects the company’s earnings to bottom out in the first quarter of this year and begin a recovery starting in the second quarter. Samsung SDI reported an operating loss of 257 billion won ($176.54 million) in the fourth quarter of 2024.

LG Energy Solution CEO Kim Dong-Myung told Reuters that he expects the company’s earnings to begin improving in the second half of the year.

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This article GM, Stellantis Supplier Samsung SDI Weighs New US Battery Plant Amid Trump's EV Policy Shift originally appeared on Benzinga.com

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