Stellantis and Lg Energy Solution will create a joint venture for the production of lithium-ion batteries in North America. The new battery plant will have an annual production capacity of 40 gigawatt hours. Launch is scheduled for Q1 2024. The factory will help meet Stellantis’ goal of bringing electrified vehicle sales to more than 40% of total US sales by 2030. The batteries produced at the plant will be supplied to Stellantis assembly plants in the United States, Canada and Mexico for installation on next generation electric vehicles.
A partnership that dates back to 2014
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. The transaction is subject to the final documentation agreement and customary closing conditions, including regulatory approvals. This operation is part of Stellantis’ development program: the group 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 between total R&D and capital expenditure versus revenue.
Tavares: “Unstoppable march towards electrification”
“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”, continued the CEO, warmly thanking all those who took part to 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,” added 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,” he specified.