Intending to produce battery cells and modules for North America,Stellantis and LG Energy Solution (LGES) have entered into a memorandum of understanding to form a joint venture.
The JV will establish a new battery manufacturing facility that will help power Stellantis’ goal of realising more than 40% of its sales in the US comprised of electrified vehicles by 2030. Targeted to start by the first quarter of 2024, the plant aims to have an annual production capacity of 40 gigawatt-hours.
The new facility's location is currently under review; however, the vehicle maker said that the groundbreaking for the facility is expected to take place in the second quarter of 2022.
The batteries produced at the new facility will be supplied to the automaker's assembly plants in the US, Canada, and Mexico for installation in next-generation electric vehicles ranging from plug-in hybrids to full battery electric vehicles sold under the Stellantis family of brands, Stellantis said in a statement.
Carlos Tavares, CEO, Stellantis, said, “With this, we have now determined the next ‘gigafactory’ coming to the Stellantis portfolio to help us achieve a total minimum of 260 gigawatt hours of capacity by 2030. Together, we will lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion.”
Jong-hyun Kim, President and CEO, LG Energy Solution, said, “LGES will position itself as a provider of battery solutions to our prospective customers in the region by utilising our collective, unique technical skills and mass-producing capabilities.”