Stellantis and Samsung SDI form North American battery JV
Stellantis and Samsung SDI announces that they have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America.
With a targeted start in 2025, the plant aims to have an initial annual production capacity of 23 gigawatt hours, with the ability to increase up to 40 gigawatt hours in the future, a press release reads. “With the forthcoming battery plants coming online, we will be well positioned to compete and ultimately win in the North American electric vehicle market,” says Carlos Tavares, CEO of Stellantis. “Our strategy to work with highly recognized 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.” “It is an honor for us to build a battery joint venture with Stellantis who is accelerating its electrification strategy in this green energy era,” adds Young-hyun Jun, President and CEO of Samsung SDI. “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.” Just a few days ago Stellantis announced that a similar deal had been struck with LG. This JV is also looking to set up a new North American battery plant with an annual production capacity of 40 GWh; targeted to start by first quarter 2024. The battery plants will fulfill 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. Stellantis says it 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 transaction is subject to agreement on definitive documentation and customary closing conditions, including regulatory approvals.