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Electronics Production |
Stellantis and LG form JV for lithium-Ion battery Production
Stellantis and LG Energy Solution have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. The new battery plant is planned to have annual production capacity of 40 GWh; targeted to start by first quarter 2024.
The plan is for this new joint venture to 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. The current plan is to have production start by the first quarter of 2024, the target is to have an annual production capacity of 40 gigawatt hours, a press release reads.
The batteries produced at the new facility will be supplied to 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.
“Today’s announcement is further proof that we are deploying our aggressive electrification road map and are following through on the commitments we made during our EV Day event in July,” says Carlos Tavares, CEO of Stellantis in a press release. “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. I want to warmly thank each person involved in this strategic project. Together, we will lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion.”
“Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership,” adds Jong-hyun Kim, President and CEO of LG Energy Solution. “LGES will position itself as a provider of battery solutions to our prospective customers in the region by utilizing our collective, unique technical skills and mass-producing capabilities.”
Stellantis plans to invest more than EUR 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.
The location of the new facility is currently under review and the companies say that they will share further details at a later date. The groundbreaking for the facility is expected to take place in the second quarter of 2022.
