MILAN. Stellantis NV (NYSE / MTA / Euronext Paris: STLA) and LG Energy Solution announced that their respective companies have entered into a memorandum of understanding for the creation of a joint venture aimed at manufacturing battery cells and modules for North America. Intended by the parties, this joint venture will result in the creation of a new battery manufacturing plant, which will help achieve Stellantis’ goal of bringing electrified vehicle sales to more than 40% of the total in the United States by 2030. The start of production is expected by the first quarter of 2024 and the plant aims to have an annual capacity of 40 gigawatt hours. The batteries produced in the new plant will be supplied to Stellantis assembly plants in the United States, Canada and Mexico for installation on next-generation electric vehicles, ranging from plug-in hybrids to full electric battery-powered vehicles, sold in the scope of the Stellantis brand portfolio.
“Today’s announcement is a further demonstration that we are implementing our unstoppable roadmap towards electrification and are following up on the commitments made at the EV Day event in July,” said Carlos Tavares. CEO of Stellantis. «With this initiative we have defined the next” gigafactory “of the Stellantis portfolio that will help us reach, at least, a total of 260 gigawatt hours of capacity by 2030. I would like to warmly thank all those who have taken part in this strategic project. Together, we will lead the industry with levels of efficiency that will be benchmarks for the sector, and we will offer electrified vehicles that will thrill ». “Creating a joint venture with Stellantis will be a historic chapter in our long-standing partnership,” said Jong-hyun Kim, President and CEO of LG Energy Solution. “Using our collective and individual technical expertise and mass production capability, LGES will position itself as a provider of battery solutions to potential customers in the region.”
The partnership between the two companies in the area of 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 system and controls for Chrysler. Pacifica Hybrid, the industry’s first electrified minivan. With this announcement, the two companies intend to further consolidate the partnership and continue to leverage their respective strengths. Stellantis plans to invest over 30 billion euros by 2025 in electrification and software development and aims to maintain 30% more efficiency than the industry average in the ratio of total R&D and capital expenditure to revenues . The location of the new facility is currently being analyzed and further details will be shared later. The foundation stone for the facility is expected to be laid in the second quarter of 2022. The transaction is subject to the final documentation agreement and customary closing conditions, including regulatory approvals.