Stellantis and Samsung SDI today announced that both the companies have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. The location of the new facility is currently under review, Stellantis said.
According to the automaker, the production will commence in 2025 with an initial annual production of 23 gigawatt-hours. The plant will have the ability to increase up to 40 gigawatt-hours in the future.
Today's initiative is part of Stellantis' strategy to secure annual production capacity for electric vehicle batteries, which will help achieve 40% of its sales in the US to be electrified vehicles by 2030.
The battery plants will fulfil the needs of Stellantis assembly plants throughout the US, Canada, and Mexico for installation in next-generation electric vehicles ranging from plug-in hybrids to full battery-electric vehicles that will be sold under the Stellantis family of brands.
The automaker plans to invest more than € 30 billion through 2025 in electrification and software development while targeting to continue to be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues.
Carlos Tavares, CEO, Stellantis, said, “With the forthcoming battery plants coming online, we will be well positioned to compete and ultimately win in the North American electric vehicle market. Our strategy to work with highly recognised partners boosts the speed and agility needed to design and build safe, affordable and sustainable vehicles that match exactly what our customers demand. I am thankful to all the teams working on this critical investment in our collective future.”
Young-hyun Jun, President and CEO, Samsung SDI, said, “With this battery joint venture, we will do our best to meet the high standards of our customers in the North American EV market leveraging Samsung SDI’s battery technology, high quality products and safety measures.”