Stellantis, one of the world’s leading automakers, and LG Energy Solution, a global leader in delivering advanced lithium-ion batteries, have announced they have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for electric cars in North America.
The collaboration will establish a new battery manufacturing facility that will help power Stellantis’ goal of realising more than 40 percent of its sales in the US from 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 batteries produced at the new facility will be supplied to Stellantis assembly plants throughout the US, Canada and Mexico. They will be used in the next-generation of electric vehicles (EVs) ranging from plug-in hybrids to full battery electric vehicles (BEVs) that will be sold under the Stellantis family of brands. This is made up of14 motor brands including Vauxhall, Peugeot, Fiat, Citroen and Jeep.
Carlos Tavares, Stellantis CEO, said: “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.
“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.”
The partnership between the two companies in electrified vehicles dates back to 2014 when LG Energy Solution (then LG Chem) was selected by Stellantis (then Fiat Chrysler Automobiles) to supply the lithium-ion battery pack system and controls for the Chrysler Pacifica Hybrid, the industry’s first electrified minivan.
With this announcement, the two companies look to solidify their partnership even further and continue leveraging each other’s strengths.
Jong-hyun Kim, LG Energy Solution CEO, said: “Establishing a joint venture with Stellantis will be a monumental milestone in our long-standing partnership.
“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.”
Stellantis plans to invest more than €30 billion through 2025 in electrification and software development, while targeting to continue to be 30 percent more efficient than the industry with respect to total Capex and research and development spend versus revenues.
The location of the new facility is currently under review and further details will be shared at a later date. The groundbreaking for the facility is expected to take place in the second quarter of 2022.